Mortgage REITs on the Upswing This Earnings Season
February 16 2012 - 8:20AM
Marketwired
Despite dividend cuts from some of the industry's heavyweights,
shares of high yielding Mortgage REITs have performed well this
earnings season. The Market Vector Mortgage REIT Income ETF (MORT)
is up more than five percent over the last month -- handedly
outperforming the Dow Jones Industrial Average. The Paragon Report
examines the outlook for diversified REITs and provides equity
research on MFA Financial Inc. (NYSE: MFA) and Hatteras Financial
Corporation (NYSE: HTS). Access to the full company reports can be
found at:
www.paragonreport.com/MFA www.paragonreport.com/HTS
Analyst Bill Carcache of Nomura Securities issued a report
stating that mortgage REITs delivered solid risk-adjusted returns
during the quarter ended December 31, 2011 despite continued
flattening of the yield curve. "As expected, spreads contracted and
dividends were cut. Prepayment speeds generally increased, and they
remain a concern in the current environment. Book value growth was
flat to negative for most companies and economic returns were
generally lower relative to the first three quarters of 2011,"
Carache explains.
The Paragon Report provide investors with an excellent first
step in their due diligence by providing daily trading ideas, and
consolidating the public information available on them. For more
investment research on diversified REITs register with us free at
www.paragonreport.com and get exclusive access to our numerous
stock reports and industry newsletters.
Recently, MFA Financial's Board of Directors declared a regular
quarterly cash dividend of $0.25 per share of common stock for the
fourth quarter of 2011, and an additional special cash dividend of
$0.02 per share of common stock. "The payment of the special
dividend is due to the fact that MFA anticipates that its REIT
Taxable Income for 2011 will exceed the sum of the dividends paid
to date and the fourth quarter regular cash dividend of $0.25 per
share of common stock," MFA said in a press release.
The Board of Directors of Hatteras Financial Corp. declared a
quarterly dividend of $0.90 per common share for the fourth quarter
of 2011. Hatteras is a real estate investment trust formed in 2007
to invest in single-family residential mortgage pass-through
securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
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