High-Yield Stocks for Dividend Investing: Two Harbors Investment Corp.

With 10%-plus dividend yields, mortgage REITs are one of the best at lining investors' pockets with cash. Over the last three years, however, returns have been far from consistent. Two Harbors Investment Corp. is one of the few mREITs that has bucked this trend. While competitors from Annaly Capital Management to ARMOUR Residential REIT have floundered, Two Harbors has continued to crank out a massive total return for shareholders.

Despite Two Harbors being better protected from interest rates compared to similar companies, once interest rates rise -- which, according the Federal Reserve's estimates (link opens a PDF), will happen in mid-2015 -- it will likely have a negative impact on the company's performance. With that said, the beauty of investing in a company that is adaptable, can invest in a diverse array of assets, and both grows and protects its book value, is that over time, the good will outweigh the bad. I see Two Harbors as a great income stock to buy today, and one of the few mREITs worth holding through a rising interest rate environment.

Source: Motley Fool

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