Hatteras Financial

  • This Mortgage REIT Is Living Dangerously On The Edge

    By Zain Zafar - August 17, 2013 | Tickers: ARR, CMO, HTS

    The second quarter saw a sharp spike in interest rates which caused havoc in the mortgage REITs sector. As book value losses became the norm, it became a question of which mREIT could get away with the least damage. In such an environment, Hatteras Financial (NYSE: HTS) was expected to outperform its peers since it follows a relatively conservative strategy of investing in agency Adjustable Rate Mortgages (ARMs). However, this more »

  • Is it Time to Buy mREITs?

    By Rupert Hargreaves - August 6, 2013 | Tickers: AGNC, CIM, HTS

    Unless you have been living in a cave for the past half year, you will have heard that mortgage REITs, and REITs in general are not doing terribly well in the current market. As the Federal Reserve hints that it could soon begin tapering its asset purchases, the value of assets held by mREITs is in for a decline, wiping out months of asset value gains.

    Having said that …

    However more »

  • This mREIT Offers Book Value Preservation and a 10% Yield

    By Zain Zafar - August 5, 2013 | Tickers: AGNC, CMO, HTS

    Mortgage REITs are among the favorite asset classes for income investors thanks to their attractive dividend yields as well as modest capital appreciation over the past few years. However, with an uncertain interest rate environment thanks to the ever looming threat of the Fed’s tapering of QE3, mREITS are giving investors some sleepless nights. A few weeks ago, I had stated that Capstead Mortgage (NYSE: CMO) is the safest more »

  • Do Recent Declines in These Stocks Offer Opportunities for Profit?

    By Rupert Hargreaves - August 2, 2013 | Tickers: CROX, HTS, ISRG

    I like to look for undervalued companies by searching for stocks that have put in the worst performances over the past week or month. However, it is not always that easy, as some companies have further to fall and there's no thesis for a long-term investment. So how do some of the biggest decliners this month stand up to analysis?

    First up, then down 24% this month

    Intuitive Surgical more »

  • Real Estate Investments: A Mortgage REIT Portfolio

    By Federico Zaldua - June 5, 2013 | Tickers: AGNC, HTS, PMT

    In light of the sell-off in Mortgage Real Estate Investment Trusts (mREIT) over the past month, now might be a good time to take a look at three ideas within the sector. In this post, I will take a look at total returns, dividend yields, and current trading valuations of three mREITs. 

    For those who are not acquainted with the Real Estate Investment Trust industry, unlike Hybrid mREITs, Agency mREITs more »

  • 5 mREITs With Attractive Yields

    By Nur Tarkak - May 30, 2013 | Tickers: NLY, CMO, CIM, HTS, TWO

    Mortgage-backed real estate investment trusts [mREITs] usually yield higher compared to other income stocks. This is due to the fact that these companies get a tax shield if their distribution of profits is at least 90%. However, income from dividends is not tax-free. Thus, investors don’t get to fully enjoy the tax-free benefit. The dividend earnings will be treated as income. Nevertheless, they are still better than having no more »

  • The Fed's Asset Purchases Continue to Hurt mREITs

    By Rupert Hargreaves - May 22, 2013 | Tickers: AGNC, ARR, CYS, HTS

    mREITs continue to feel the pressure as the Federal Reserve’s continual asset buying depresses the yields on their mortgage assets, squashing interest received by the companies, their net income, and investor returns.

    mREITs, or mortgage real estate investment trusts, work by borrowing money in order to purchase mortgage backed securities (MBS). The borrowing is usually in the form of a repurchase agreement (REPO) for which the company pays a more »

  • The Underappreciated Risk in Mortgage REITs

    By Bob Chandler - May 9, 2013 | Tickers: AGNC, NLY, HTS

    Many investors have turned to mortgage real estate investment trusts (mREITs) to juice investment income. They seem to have exceptionally attractive dividend yields and are thought to be fairly safe. Some of the most popular are Annaly Capital Management (NYSE: NLY), American Capital Agency (NASDAQ: AGNC), and Hatteras Financial (NYSE: HTS). But shareholders need to remain alert; the same factors that make the dividends so appealing may also be increasing more »

  • An 11% Yield With Potential Growth

    By Chad Henage - March 20, 2013 | Tickers: AGNC, NLY, HTS, IVR

    With short-term interest rates as low as they have been in years, it's not surprising that investors are looking for a better yield on their investments. The current environment has made mortgage REITs very popular because of their high-yields. However, there is one company in this space that looks like the best overall play. Invesco Mortgage Capital (NYSE: IVR) might not be the most well known name in this more »

  • These 3 Numbers Make This High-Yield Stock A Buy

    By Chad Henage - March 19, 2013 | Tickers: NLY, CMO, HTS, IVR | Editor's Choice

    High yielding stocks get a lot of attention these days, because of the low interest rate environment. The challenge for investors is, discovering which high yield will hold up. The REIT business holds many high yield candidates, but from what I can see, there are three numbers that make Hatteras Financial (NYSE: HTS) a buy at these levels.

    An Idea As Old As The Market Itself
    It's ironic that more »

  • Have Income Investors Returned To Agency mREITs?

    By Mohsin Saeed - January 31, 2013 | Tickers: AGNC, NLY, ARR, CYS, HTS

    Back in December last year, Agency mortgage REITs were trading on deep discounts to their book values Since the beginning of the year 2013, Agency mortgage REITs have appreciated in price greater than the year to date performance of S&P (the broad market). However, most are still trading at discounts to their book values yielding attractive double digit dividends under the ultra low interest rate environment.  

    Year To Date more »

  • How Will Annaly React To Fiscal Cliff Agreement?

    By Jordo Bivona - January 7, 2013 | Tickers: NLY, ARR, CMO, HTS | Editor's Choice

    Americans are mixed on the "fiscal cliff" agreement reached by Congress and signed into law by President Barack Obama. 43% of Americans approve of the decision that was agreed upon, while 45% disapprove of the decision. The fiscal cliff agreement will dissolve some, but not all, of the negative economic impacts of going over the cliff. Most importantly, the agreement will extend the Bush-era tax cuts for the vast majority more »

  • 13 for '13: Thirteen Market-Beating Investments for the New Year

    By Jeff Ross, MD - January 2, 2013 | Tickers: NLY, HTS, MCD, SBY, TWO

    Every investor dreams of beating the market.  While speculators like to shoot for the moon, wise investors first try NOT to lose money, and second, try to compound safe, robust returns over time.  

    This new year, take control of your money and your investments.  Don't let the market "game" you into paying lots of handsome fees to buy stupid stocks.  Instead, look for great, shareholder-friendly companies selling at good more »

  • A Jack of All Trades With an 11% Yield

    By Chad Henage - December 19, 2012 | Tickers: NLY, CIM, HTS, IVR

    In certain businesses, it's better to have flexibility. I'll never forget Peter Lynch saying that this was one of the keys to his investing success was that his fund wasn't tied to one type of investment class. He could take good ideas from growth or value funds and invest where the best opportunity was at the time. This is the way I think of Invesco Mortgage (NYSE: IVRmore »)

  • Why This Dividend Cut Is a Good Thing

    By Chad Henage - December 19, 2012 | Tickers: NLY, CIM, HTS, IVR

    Some investors have adopted a very short-term way of thinking in today's market. I personally prefer companies that are investing in their business for the long-term rather than trying to “buy” short-term profits. This is partially why I own shares in Hatteras Financial Corp. (NYSE: HTS). Hatteras is a mortgage real estate investment trust, but the company specializes in adjustable rate loans instead of the 30 year variety that more »

  • Is This REIT a Good Contrarian Play at the Moment?

    By Meena Krishnamsetty - October 12, 2012 | Tickers: NLY, CMO, CIM, HTS, TWO

    Annaly Capital Management (NYSE: NLY) is one of the most loved REITs, paying a dividend that yields 12.2% and boasting a market cap of $15 billion. Being an owner, manager, and financer of various real estate related investments, Annaly has navigated the tough real estate market relatively well, being down only 9% since 2008, versus the S&P 500’s 3% decline over this time period.

    However, Morgan Stanley more »

  • 4 Highly Rated Stocks with High Yields

    By Chad Henage - October 3, 2012 | Tickers: AGNC, NLY, CIM, HTS

    When it comes to mortgage REITs I've found there are basically two types of investors. In one camp are the investors who believe that these are solid investments offering extremely high yields. While they realize that these yields won't be around forever, the current low interest rate environment is expected to last a while and they are willing to ride the wave. The second set of investors believe that mortgage REITs are a huge value trap and that when interest rates rise investors will get crushed. I've been on both sides of this argument in the past. What I find comforting is the fact that the Motley Fool CAPS community believes in several of these companies enough to give them either 4 or 5 star ratings. With the two highest ratings possible, these investments could be the best of the bunch. Let's take a look at the four companies and see if we can determine which one might be the best buy today.

  • 5 Dividend Monsters for Strong Income

    By Meena Krishnamsetty - September 27, 2012 | Tickers: CIM, CIG, HTS, ORAN, PBI

    We have identified five monster dividend stocks that yield at least 9%. While a yield this high sounds too good to be true, all of the companies’ payout ratios – the ratio of earnings paid out in the form of dividends – are less than 80%.

    The first company we found is Pitney Bowes, Inc. (NYSE: PBI). The company recently lowered 2012 guidance, with expectations that revenue would be down 4% and more »

  • This mREIT is the Best Investment for QE3

    By Meena Krishnamsetty - September 19, 2012 | Tickers: AGNC, NLY, ANH, CMO, HTS

    Unless you’ve been living under a rock for the last few days, you’re probably aware of Ben Bernanke’s newest plan to stimulate the economy, via purchases of mortgage-backed securities. Okay, to call the plan new isn’t really fair, as its name QE3 would suggest, but it is slightly different nonetheless, with the Federal Reserve Chairman squarely declaring his commitment to an open-ended policy until significant improvements more »

  • SAB Capital is Betting Big on this High Dividend Stock

    By Meena Krishnamsetty - September 13, 2012 | Tickers: MTGE, NLY, HTS, IVR, TWO

    Today, SAB Capital Management, managed by Brian Jackelow, announced in a Form 3 filing with the SEC that it had increased its stake of American Capital (NASDAQ: MTGE) above 10%. This transaction increases SAB Capital’s holdings of American Capital Mortgage from 3.3 million shares to a little over 4.7 million shares.

    In early June of this year, the hedge fund reported that it had taken a 7 more »

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