As the Federal Reserve has kept interest rates at record lows, investors looking for yield have flocked to the mREIT sector, which flaunts massive dividend yields because of tax laws requiring a large portion of earnings to be distributed to shareholders.Â
However, investors are beginning to wonder if mREITs will get burned if interest rates quickly tick higher or repo-financing markets become more expensive.
In this video, Motley Fool financial analysts David Hanson and Matt Koppenheffer tell investors how they feel about the industry on a "Bearish/Bullish" 1 to 10 scale.
There's no question Annaly Capital's double-digit dividend is eye-catching. But can investors count on that payout sticking around? In The Motley Fool's premium research report on Annaly, senior analysts Ilan Moscovitz and Matt Koppenheffer uncover the key challenges the company faces and divulge three reasons investors may consider buying it. Simply click here now to claim your copy today!
The article Bull or Bear: Is There Hope for mREITs? originally appeared on Fool.com.David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America. The Motley Fool owns shares of Bank of America. 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.