Strong Company With A 9.48% Dividend Yield But Still Overvalued

This company knows how to sustain a dividend. It has less exposure to prepayments rates compared to the vast majority of mortgage REITs. The company has a solid dividend history compared to others in the sector. Investors in it tend to sell at a large discount to book if there is any fear of a recession. Fear can lead to a major price drop and create a good buying opportunity. Today prices and confidence are simply too high.

MFA Financial (MFA) is one of the stronger mortgage REITs. It is also one of the most expensive mortgage REITs. Investors are having to pay a substantial premium for quality. The company has a great management team and operating expenses are very reasonable. Investors trying to understand MFA Financial will need to know more about their portfolio strategy.

Source: Seeking Alpha

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