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Hatteras Financial

  • 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 »

  • This mREIT Expands its Spread Despite Continued Fed's Easing

    By Adnan Khan - April 25, 2013 | Tickers: AGNC, CYS, HTS

    The earnings season has already kicked off and the mortgage REITs have started reporting their first quarter performance. First it was CYS Investments (NYSE: CYS) and now Hatteras Financial (NYSE: HTS). The remainder of the investment thesis aims to review the latest earnings of Hatteras Financial in light of the prevailing ultra low interest rate environment.

    Hatteras Financials

    Hatteras Financials reported earnings per share of $0.62 for the first more »

  • 3 Undervalued Financial Stocks Yielding Over 9%

    By Adnan Khan - April 6, 2013 | Tickers: ARR, CMO, HTS

    In this article, I present to you three financial stocks that are undervalued and are yielding above 9% each. Since most of the financial stocks are valued at their book values, I have selected stocks that are trading below their book values. Since the stocks are undervalued, you can expect capital appreciation. Capital appreciation potential coupled with the high dividend yields present an excellent opportunity for enhancing your total returns more »

  • 3 Undervalued Financial Stocks Yielding Over 9% Each

    By Adnan Khan - April 4, 2013 | Tickers: ARR, CMO, HTS

    In this article, I present to you three financial stocks that are undervalued and are yielding above 9% each. Since most of the financial stocks are valued at their book values, I have selected stocks that are trading below their book values. Since the stocks are undervalued you can expect capital appreciation. Capital appreciation potential coupled with the high dividend yields presents an excellent opportunity of enhancing you total return more »

  • 3 High Dividend Stocks Insiders and Analysts Love

    By Adnan Khan - March 29, 2013 | Tickers: ARR, HTS, WMC

    The Fed is unlikely to discontinue its stimulus despite rising concerns about its costs. The officials at the U.S. central bank are likely to press on with their bond-buying program, which will continue to disadvantage investors looking for regular income.

    One of the objectives of the Fed’s stimulus programs is to bring down the interest rates, so that borrowing is made cheaper. As far as the capital markets 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 »

  • 3 mREITs With Positive Insider Buying

    By Adnan Khan - March 6, 2013 | Tickers: AGNC, NLY, AMTG, CYS, HTS

    In recent months, mortage REITs have looked like an increasingly risky bet for investors. Yet a stock screen has revealed that insiders at the following mortgage REITs are still buying shares:

    • American Capital Agency (NASDAQ: AGNC)
    • Hatteras Financial (NYSE: HTS)
    • Apollo Residential Mortgage (NYSE: AMTG)

    Let's explore the current state of the mortgage REIT market, then examine each of the stocks above to see why insiders might be buying more »

  • Which REIT is Right?

    By Adnan Khan - February 13, 2013 | Tickers: AGNC, CYS, HTS

    Hatteras Financial Corp (NYSE: HTS) started operations in 2007 as a mortgage REIT that seeks to invest in single family mortgage backed securities for which any of the government sponsored Agencies guarantees principal or interest payments. The company invests in both fixed rate and Adjustable rate mortgage backed securities. At the end of the fourth quarter of 2012, the company was managing an investment portfolio of $25.8 billion, compared 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 »

  • Don’t Miss This Exciting 10% Yielding mREIT

    By Adnan Khan - January 27, 2013 | Tickers: AGNC, NLY, HTS

    Company Description

    Hatteras Financial (NYSE: HTS), like its fellows Annaly Capital Management (NYSE: NLY) and American Capital Agency (NASDAQ: AGNC) is a pure play Agency mortgage REIT. The company, with a market cap of $2.7 billion, owns assets with short durations and predictable prepayment characteristics. Company policy dictates the management to distribute 100% of its taxable income.

    Asset Portfolio
    Hatteras has both fixed rate and adjustable rate Agency securities 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, FTE, HTS, 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 »

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