Income investors love high-yield stocks while value investors are always on the look-out for companies trading below book value. It's rare that you find a stock that's trading at a discount to book but at the same time offers an attractive, sustainable dividend yield.
However, according to Grant's, mortgage real estate investment trusts present such an opportunity. In a piece titled "12% goes begging" published in last week's issue, Grant's laid out the opportunity on offer at mREITs, namely the hefty double-digit yield and discount to book value.
Grant’s mREIT discounts
The companies featured were Annaly Capital Management, American Capital Agency Corp., and Capstead Mortage Corp., which have all offered market beating dividend yields for some time. But, they are now cheaper...
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