8.5% Yield Worth Considering

This company has some of the better preferred shares in the mortgage REITs in the sector. Its A series is normally within our sell range. However, it has dropped materially and is now well within the hold range. More aggressive investors may be interested in purchasing its A series and selling if prices pop back up. Beware of call risk.

We will be focusing on Anworth Mortgage Asset Corporation's (ANH) preferred share ANH-A. Shares are usually in the sell range, but prices have plunged well into the hold range. ANH is one of the less risky mortgage REITs, but we still have them at a risk rating of 4. The preferred shares carry materially less risk than the common stock. We have ANH’s preferred shares at a risk rating of 2.

Source: Seeking Alpha

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