Why Is MFA Financials' Dividend Yield So High?
The mortgage industry is going through a wrenching retrenchment right now, and the stocks of companies in this sector have underperformed. Mortgage bankers have been crushed by rising interest rates and declining volumes.
Mortgage real estate investment trusts (REITs) have struggled as mortgage-backed securities they hold have underperformed Treasuries. These declines have created high dividend yields for many of the stocks. Mortgage REIT MFA Financial (NYSE: MFA), for example, has a dividend yield of more than 15%. Is it sustainable?
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Source Fool.com
