mREITs rebound as yield curve stabilizes, boosting dividends and portfolio growth.

Mortgage Real Estate Investment Trusts (mREITs) are recovering strongly as the yield curve stabilizes, leading to improved cash flows. Annaly (NLY) comfortably covers its dividends with earnings of $0.76 per share and may increase dividends in 2026. Dynex (DX) has aggressively expanded its portfolio by 27% to capitalize on peak mortgage yields. These mREITs provide a defensive investment option that can perform well even during broader market downturns, making them attractive for income-focused investors.