5 mREITs Delivering High Yields of 7% or More

The Federal Reserve has kept interest rates at basically zero for what seems like an eternity, pushing investors of all stripes into high-yielding sectors. Real estate investment trusts — those high-yielding entities that pay out most of their profits in dividends — have been one of the expected beneficiaries. But while most people are familiar with equity REITs — the kind that own and manage buildings — another kid on the block might be of interest: mortgage REITs, or just mREITs for short.

Of course, this is far from a perfect system. The looming storm cloud of rising interest rates has clipped mREITs, because as short-term interest rates, so do borrowing costs. Thus, share prices for mREITs have fallen hard. This is far from a riskless sector to play in, but the rewards for the brave are sky-high dividend yields. Today, we’ll look at five such mREITs yielding anywhere from 7% to 14%: Blackstone Mortgage Trust (BXMT), Hatteras Financial (HTS), Invesco Mortgage Capital (IVR), Two Harbors Investment (TWO) and iShares Mortgage Real Estate Capped ETF (REM).

Source: InvestorPlace

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