AGNC Investment funds its investments primarily through collateralized borrowings structured as repurchase agreements. The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders.
AGNC Investment stock investors receive an 11.76% distribution. Keefe Bruyette’s price target is $13.25. The $12.40 consensus target is closer and Friday’s closing share price of $12.25.
Annaly Capital Management
This stock is trading well under $10, which gives aggressive investors a chance to really load up on the shares. Annaly Capital Management Inc. (NYSE: NLY), a diversified capital manager, engages in mortgage finance and corporate middle market lending.
The company invests in agency mortgage-backed securities, mortgage-servicing rights, agency commercial mortgage-backed securities, non-agency residential mortgage assets, residential mortgage loans, credit risk transfer securities, corporate debts and other commercial real estate investments. It has elected to be taxed as a REIT.
The company posted massive second-quarter earnings and revenue results that beat analyst expectations. Trading at a tiny 2.6 times earnings, it offers aggressive investors a huge opportunity.
Shareholders receive a 13.44% dividend. The Barclays analysts have set a $7 target price. The consensus target is $6.54 and Annaly Capital Management stock closed on Friday at $6.55.
Broadmark Realty
Similar to a mortgage REIT, this top company is an investor in what is known as deed of trust loans. Broadmark Realty Capital Inc. (NYSE: BRMK) engages in the underwriting, funding, servicing and managing a portfolio of short-term and first deed of trust loans to fund the construction, development and investment in residential or commercial properties in the United States.
The company also provides short-term and first deed of trust loans secured by real estate to fund the construction and development and investment in residential or commercial properties. The company has elected to be taxed as a REIT. As a result, it is not subject to corporate income tax on that portion of its net income that is distributed to shareholders.
Investors receive an 11.26% distribution. The $9 B. Riley Securities target price compares with an $8.17 consensus target and Friday’s close at $7.45.
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