mREITs: Soon-to-Be Fed Victims, Or High-Yield Surprises?

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mREITs: Soon-to-Be Fed Victims, Or High-Yield Surprises?

The stock market doesn’t just hand out safe yields up to 11.8%, vanilla money managers will tell you. And they are mostly right—but sometimes wrong.

When these 11.8% dividends are safe to buy, it can really pay to be contrarian.

An 11.8% yield means that a million-dollar portfolio can generate $118,000 in passive income per year. That is a solid six-figure salary to start with.

It is dividends like these that make mREITs (mortgage real estate investment trusts) so attractive. We’ll highlight three today that yield between 10.3% and 11.8%. But first, a business primer.

mREITs: Big Dividend Rewards (with Risks)

Equity REITs own and maybe even operate a number of properties, be they malls, hotels, hospitals or even driving ranges.… Read more

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A 7%-Yielding Portfolio That Flies WAY Under the Radar

Don’t get me wrong—I love my kids. It’s just that I’ve loved “hidden yields” longer.

What are these long-term affectionate affairs of mine? These under-the-radar dividends require looking at the bigger-picture view of all the cash a company is spending on you and me. Sometimes it means looking past a low current yield and instead focusing on rampant dividend growth that will mean big income down the road.

But sometimes, that simply means looking where everyone isn’t—like five little-known stocks yielding a cool 7% on average that we’ll discuss today.

The Virtue of Hidden Stocks

To understand the power of investing in the relatively unknown, consider this quick story from a good friend of mine:

Used-car prices have skyrocketed over the past few months.… Read more

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2 Stocks Paying Over 8% with 137%-Plus Earnings Growth

The market consistently rewards faster earnings growth in stocks, even with more income-oriented names. Higher profits can lead to higher future dividends, which in turn helps investors build wealth, even as inflation is rising.

I’ve found two companies with hefty dividends that more than doubled earnings per share in the latest quarter. However, chasing the highest growth from one quarter to the next doesn’t always pay, if those profits aren’t passed down to investors as dividends on a consistent basis.

Earnings Growth Could Stem Tide of Dividend Cuts

Ellington Financial LLC (EFC) is a specialty finance company with over $7 billion in assets that invests in everything from mortgage backed securities, to collateralized loan obligations and distressed corporate debt.… Read more

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