The VanEck Mortgage REIT Income ETF (MORT) trades near $10.12 with a trailing yield around 14.7%, reflecting distributions from 27 mortgage REITs. Despite Federal Reserve rate cuts easing funding costs, MORT's payouts remain volatile, influenced by underlying REIT earnings and net asset value pressures. The yield curve steepening supports net interest margins, but high long-term rates and soft home sales pose risks. MORT suits investors seeking income with tolerance for fluctuating quarterly dividends and moderate risk, especially if long rates decline into 2027.
Annaly Capital Management's preferred share NLY-J provides a low-risk profile with an 8.63% fixed stripped yield and call protection until September 2030. However, its current trading price of $25.72 is above the recommended buy-under target of $23.8...
The iShares Mortgage Real Estate ETF (REM) was upgraded to Hold due to better fundamentals in its top holdings like NLY, AGNC, and STWD, which now show reduced leverage, improved net interest margins, and more diversified portfolios. REM offers a sus...
