It’s no secret that interest rates are rising.
They’re still extremely low, though… like real, real low. But at the same time, the Real Estate sector is heating up, and I have my eye on a specific group of REITs related to both the Real Estate sector and real estate financing.
And the financial REITs to own I’m bent on offer healthy dividend yields because they tend to be flush with cash, and they payout most of the money they have to shareholders.
But what has me most excited is that these names give investors a good way to diversify their portfolios from tech stocks that appear overbought until earnings confirm they can generate significantly more cash for their investors.
So let’s focus on a few financial REITs to own that aren’t directly related to the banking industry, and offer reasonable yield on their dividend.
Be mindful that the picks I have for you today aren’t stocks — they’re REITs. But as you should already know, they trade just like regular stocks do.
The first financial REIT to own this summer is Ellington Financial Inc. (NYSE: EFC).
EFC is a finance REIT that engages in inquiring and managing mortgage-related assets such as residential and commercial mortgage-backed loans, consumer loans and other strategic investments.
It’s a bit more diversified than most growth stocks in this sector. It focuses on residential and commercial mortgage-backed securities and other investments like collateralized debt obligations and equity investments.
But I haven’t even gotten to the best part yet…
EFC said in early April that it’s raising its dividend, which is a very bullish indicator. The stock is up 88% the past year, but its market cap is still under $1 billion. So that means there’s plenty of potential upside, and EFC remains in growth mode because it’s in the Russell 2000.
And if you watch all of my videos, then you already know I’ve been loving this index.
The one-year return on EFC is 77-plus percent, and it’s annual dividend yield is 6.81%… which is a lot for REITs… and much better than anything you’d get from Uncle Sam if you know what I mean.
I have a price target of about $23 per share over the next quarter…
That means you don’t want to miss out on any of the financial reits to own I’m giving away today. So check out my short video below, and be sure to leave your thoughts in the comments section.
And don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. Future of Wealth Head Trader Lance Ippolito just told me something crazy, folks…
He says he owes all of his success to an unusual stock market phenomenon he’s calling a “Breakout Date.”
It’s an explosive date that’s tied to only 19% of publicly traded companies…
And while the dates don’t have anything to do with earnings, Lance says they’ve been responsible for steady gains like 143% on AUPH in 10 days… 175% on BHC in eight days… and even 210% on CRMD in 20 days.
So Lance decided on a quick training event to show everyday folks how they can spot these explosive dates for themselves…