Who Will Really Get Burned on mREITs?
Jan 30th 2013 2:56PM
Updated Jan 30th 2013 4:05PM
In this video, Foolish financial analyst Matt Koppenhaffer gives a word of caution regarding mortgage REITs. To be sure, the double digit dividends paid by these firms is appealing. However, many mortgage REITs invest in repurchase financing agreements that generate minimal returns. Even though these REITs are not heavily leveraged relative to banks, Matt believes many investors may be underestimating the risk/reward ratio these REITs possess.
Annaly Capital Management has a history of paying huge dividends to shareholders. But there are some crucial issues investors have to understand about Annaly's business model before buying the stock. In this brand-new premium research report on the company, our analyst runs through these absolute must-know topics, as well as the future opportunities and pitfalls of their strategy. Click here now to claim your copy.
The article Who Will Really Get Burned on mREITs? originally appeared on Fool.com.Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.