List of Mortgage REITs to Invest in Today

If you're looking to invest in mortgage REITs, here are some top options to consider. AGNC Investment Corp. is one of the largest mortgage REITs, with a market capitalization of over $10 billion.

AGNC Investment Corp. has a strong track record of delivering dividend yields to its shareholders, with a current yield of around 12%. This is due in part to the company's focus on investing in high-yielding mortgage-backed securities.

AGNC Investment Corp. also has a low debt-to-equity ratio, which makes it a relatively safe investment option. This is a key consideration for investors who are looking for a stable and secure investment.

Annaly Capital Management, another popular mortgage REIT, has a similar yield to AGNC Investment Corp. at around 12%.

Here's an interesting read: Is It a Good Time to Invest in Reits

REITs in India are security instruments that allow individuals to invest in income-generating real estate properties without directly owning or managing them. They were introduced by SEBI in 2007 and updated in 2014.

REIT companies run businesses by owning and operating real estate properties that generate income. One of the advantages of REITs is that both large and small corporations can pool their resources and invest in larger projects.

REITs provide a great opportunity for investors to receive income as dividends dispersed by REITs which they generate from rental revenue from the Real estate properties they operate.

Take a look at this: Commercial Real Estate Mortgage Broker

High-Yield Mortgage REITs are a great source of passive income for investors. They offer attractive dividend yields due to their conservative loan-to-value ratios and the ability to raise debt at lower interest costs than they can command on their real estate mortgage investments.

One of the key characteristics of Mortgage REITs is their significant leverage, which can lead to risks such as dividend cuts. However, this leverage also allows them to generate stable cash flow, making them an exceptional source of passive income.

Here are some of the highest-yielding Mortgage REITs, along with their dividend yields:

These Mortgage REITs offer some of the highest dividend yields in the market, making them an attractive option for income investors.

Sachem Capital (SACH) is a Connecticut-based real estate finance company that specializes in originating, underwriting, funding, servicing, and managing a portfolio of short-term loans secured by first mortgage liens on real property located primarily in Connecticut.

Each of Sachem's loans is personally guaranteed by the principal(s) of the borrower, which is typically collaterally secured by a pledge of the guarantor's interest in the borrower. This unique business model sets Sachem apart from other mortgage REITs.

Sachem generates around $65 million in total revenues, with a significant portion coming from interest income.

In its Q2 2024 results, Sachem reported total revenues of $15.2 million, down 7% compared to Q2-2023. The decrease in interest income was due to a lower number of loans originated, modified, or extended in comparison to last year.

Sachem's fee income from loans, primarily made up of origination fees, were down about 37.2% year-over-year.

Here are the key financial metrics for Sachem Capital:

Despite the decline in revenue, Sachem's dividend yield remains attractive at 12.1%. This makes it an interesting option for income investors looking for high-yielding mortgage REITs.

New York Mortgage Trust (NYMT) is a unique player in the mortgage REIT space. It acquires and invests in mortgage-related assets, but doesn't own physical real estate.

The trust invests in a variety of assets, including residential mortgage loans, multi-family CMBS, preferred equity, and joint venture equity. NYMT's investment strategy is quite broad.

In its second quarter earnings report, NYMT posted a loss of 25 cents per share, missing estimates by a significant 35 cents. This was a disappointing result.

Total net interest income for the quarter was $19.04 million, a 26% increase from the same period last year. However, this still fell short of estimates by over $4 million.

Management noted that recent interest rate market activity was indicative of falling inflation and a slowing economy.

If you're looking for other high-yield investments beyond mortgage REITs, consider this: mREITs are exempt from corporate taxes on their net interest income, which can result in very high dividend yields.

For another approach, see: Why Were Mortgage Rates so High in the 80s

Mortgage REITs finance their portfolios with a mixture of equity and debt, often at interest costs lower than the interest rates they command on their real estate mortgage investments, generating significant and stable cash flow.

The result is that mREIT shareholders can earn very high dividend yields, making mREIT shares an exceptional source of passive income.

Mortgage REITs are required to pay out at least 90% of their taxable income to shareholders via dividends, which can be a major advantage for income investors.

This exemption and payout requirement can result in dividend yields that are meaningfully higher than those of other investment options.