I Wouldn’t Touch These 2 Mortgage REITs, Even With Yields Over 16%. Here’s the 10%-Yielder I’d Buy Right Now.
This mortgage REIT should benefit from rising rates.
Overview
The 10-year Treasury yield recently touched a 24-year high at nearly 5.3%. The surge in this benchmark rate has driven down mortgage REIT stock prices, boosting their yields. Leading residential mortgage REITs AGNC Investment (NASDAQ:AGNC) and Annaly Capital Management (NYSE:NLY) both currently yield more than 16%. While that's alluring to an income-seeking investor like me, I wouldn't touch them right now.
Instead, I've been buying shares of commercial mortgage REIT Ladder Capital (NYSE:LADR), which currently yields more than 10%. Here are a couple of key differences that make it stand out in an environment of rising rates.
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Originally published at www.fool.com.
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