AGNCO - 2 Mortgage REITs: Fat 8% To 10% Dividend Yields With Upside

• Mortgage REITs can offer investors extremely high yields. While the yields are attractive, we want to keep an eye on prices as well.
• Rather than just paying lip service to prices, investors need to really dig into those price-to-book ratios and contrast current ratios with reasonable ratios.
• In this case, we can see NRZ and PMT offering investors a healthy amount of upside as the price-to-book ratios dipped quite a bit.
• It’s interesting to see that some peers didn’t fall harder, given the peer's materially weaker results.
• Dividends are not the only reason for owning shares. However, we do not mind getting paid well for our time.

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