FBRT - 4 Double-Digit Dividend Distributors

2024-07-10 03:06:15 ET

Summary

• Dividend yields from 13.2% to 17.4%.
• Two of these stocks are awful. Pair trade?
• I keep buying one of the REITs. Hopefully, it isn’t one of the awful ones. That would be awful.
• We’ll also look at a 10% yielder that dominated on total returns and risk-adjusted returns.

Time for another run down on the mortgage REITs. We’re going with one of my favorite layouts.

I call this one:

Turn music on and mash on the keyboard until money comes out.

In other words, I'm sharing a few random observations.

Ready Capital

First thing that stands out. I’m surprised Ready Capital ( RC ) has underperformed so much over the last couple years. I know I’ve brought this up a few times, but I’m still surprised by the weak performance.

To be clear, Ready Capital hasn’t done great on fundamentals. They’ve seen the value of assets decline, and they have some loans that aren’t performing. As management referenced previously, they marked down a bunch of those loans to reflect sale value. These were assets that could be held at historical amortized cost adjusted for any impairments....

For further details see: