Get Rich - Stay Rich - Investing for Monthly Income

Posts Tagged ‘NYMT’

Buy This Stock for a 16% Dividend Yield

New York Mortgage Trust (NYMT) has priced its underwritten registered public offering of 13.5 million shares of common stock at a public offering price of $6.89 per share.  Currently the shares are trading at $6.46 so investors can buy the stock below the IPO price.  One of the best times to buy shares is when they sale shares to raise funds.  Typically, the stock price will sell off when new shares are made public creating a cheaper buying price.

New York Mortgage will report Q3 earnings on October 30.  The Company reported Q2 net income attributable to common stockholders of $5.1 million, representing net income per weighted average share of $0.34 for the quarter ended June 30, 2012, as compared to$4.2 million of net income attributable to common stockholders and net income per weighted average share of $0.44 for the quarter ended June 30, 2011.

New York Mortgage has a current dividend yield of 16%.  The dividend was increased 8.0% in Q2 2012.  On September 18, 2012 the board of directors at New York Mortgage Trust approved a dividend of $0.27 per share.

Here are the recent analyst actions:

On October 1, 2012 Thomson Reuters/Verus upgraded NEW YORK MORTGAGE TRUST INC NEW from SELL to BUY.

On September 28, 2012 Ativo Research upgraded NEW YORK MORTGAGE TRUST INC NEW from FAVORABLE to MOST FAVORABLE.

New York Mortgage has an equity summary score of 9.8 out of 10 for a VERY Bullish outlook.  First Call analysts have a BUY recommendation with a 2.0 rating.

New York Mortgage has a 12-month price target of $8.

Stocks with Dividend Yields Above 10%

The following table displays stocks with a high dividend yield of 10% or more.  These stocks are rated bullish or very bullish by their equity summary scores.  The complete list includes PZN, CXS, NYMT, ANH, DX, PMT, ARI, and NCT.  The top 3 yielding stocks are profiled below.

Pzena Investment Management, Inc. (PZN) is a publicly owned investment manager. It provides its services to individuals, typically high net worth individuals, investment companies, charitable organizations, corporations, state or municipal government entities, pension and profit sharing plans, and pooled investment vehicles. The firm launches and manages equity mutual funds and manages balanced mutual fund for its clients. The firm invests in the public equity markets across the globe. The firm employs fundamental analysis while making its investments. Pzena Investment Management, Inc. was founded in 1995 and is based in New York City.  PZN is trading at $4.96 with a dividend yield of 15.3%.   On February 8, 2012 PZN approved a
dividend of 0.19 per share payable on March 2, 2012.

On 02/08/12, the company announced quarterly earnings of 0.08 per share, a positive surprise of 11.1% above the consensus 0.07.  Over the past 4 quarters, the company has reported 3 positive (>2%), 0 negative (<-2%), and 1 in-line (within 2%) surprises.  The average surprise for this time period has been 4.7%.  PZN’s current quarter consensus estimate has increased over the past 90 days from 0.07 to 0.08, a gain of 17.1%.  This improvement is significantly greater than its Industry average of 0.0% during the same time period.  Over the past 90 days, the consensus price target for PZN has increased notably from 4.31 to 5.25, a gain of 21.8%.

CreXus Investment Corp. (CXS) is specialty finance company, which acquires, manages, and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial mortgage-backed securities (CMBS), and other commercial real estate-related assets. It also acquires subordinated commercial mortgage loans and mezzanine loans.  CXS is trading at $10.98 with a 13% yield.

On 02/23/12, the company announced quarterly earnings of 0.55 per share, a positive surprise of 63.2% above the consensus 0.34.  Over the past 4 quarters, the company has reported 3 positive (>2%), 1 negative(<-2%), and 0 in-line (within 2%) surprises.  The average surprise for this time period has been 26.2%.  CXS’s current quarter consensus estimate has remained relatively  unchanged over the past 90 days at 0.31.  Estimates within its Industry have moved an average of 1.0% during the same time period.  During the past four weeks, analysts covering CXS have made 2 upward and 0 downward EPS estimate revisions for the current quarter.

New York Mortgage Trust, Inc., (NYMT) operates as a real estate investment trust (REIT) in the United States. The company engages in acquiring, investing, financing, and managing mortgage-related assets.  While New York Mortgage Trust Inc.’s earnings have increased from $0.11 to an estimated $0.35 over the past 5 quarters, they have shown acceleration in quarterly growth rates when adjusted for the volatility of earnings. This indicates an improvement in future earnings growth may occur.  NYMT is trading at $7.02 with a 14% yield.  NYMT has an outperform rating from Zacks Investment Research.

NYMT’s current quarter consensus estimate has decreased over the past 90 days from 0.34 to 0.33, a loss of -5.0%.  Consensus estimates for the Specialty Financials Industry have moved an average 1.0% during the same time period.  During the past four weeks, analysts covering NYMT have made no upward or downward EPS estimate revisions for the current quarter.

Best Dividend Stocks for 2012 – Mortgage REITs

Attractive Returns to Continue, Prefer Non-Agency REITs

Prefer non-Agency: Heading into 2012 we think that the hybrid/non-Agency REITs generally offer more attractive value with the potential for more capital appreciation plus a more stable dividend outlook given the attractive reinvestment environment.

TWO remains top pick: Against this framework Two Harbors remains our top pick among the mortgage REITs.  The company has been opportunistically adding to its non-Agency position at incrementally accretive risk-adjusted yields.  This combined with the Agency portfolio with favorable prepayment characteristics gives us confidence in the sustainability of the current 16.8% yield.

Agency MBS: While the net interest spread opportunity in the Agency MBS space contracted during 2011 the returns remain attractive by historical standards.  In addition the reduced uncertainty around the prepay environment, specifically government actions, should make for a more predictable return path than in 2011.

Non-Agency MBS: In 2012 we continue to see the spread environment remaining attractive on a risk-adjusted basis with incremental spreads higher than the existing realized spreads.  It is more challenging to know how the securities will perform on a mark to market basis, which will be dependent on the broader
market risk appetite over the short-term.

Capital Raising: Given the attractive level of returns we see that the mortgage REITs will continue to have an appetite to raise additional capital.  The current gating factor is stock prices; current valuations would generally not allow the mortgage REITs to raise new stock at a price below book value.  We see the need for 6-7% premium in the group for offerings to become more likely.

Valuation: The relationship between price to book and ROE is less correlated today than it has been in the past as investors are putting a greater premium on safety versus returns.  This results in higher price to book multiples for the Agency REITs versus the broader group of hybrids.

The table below displays the mortgage REITs with the highest equity score (compellation of analyst opinions with 10 being Very Bullish).

Mortgage REITs for 2012, getrichinvestments.com

Click to enlarge

Share Some Winning Cash
Archives