In this article, we discuss 5 high yield REIT dividend stocks for 2022. If you want our detailed analysis of these stocks, go directly to 10 High Yield REIT Dividend Stocks For 2022.
5. Two Harbors Investment Corp. (NYSE:TWO)
Dividend Yield as of January 25: 12.27%
Number of Hedge Fund Holders: 31
Founded in 2009, Two Harbors Investment Corp. (NYSE:TWO) is an internally managed real estate investment trust based in Minnesota.
Two Harbors Investment Corp. (NYSE:TWO) on December 16 declared a $0.17 per share quarterly dividend, in line with previous, payable on January 28.
Citi analyst Arren Cyganovich initiated coverage of Two Harbors Investment Corp. (NYSE:TWO) on January 4 with a Neutral rating and a $5.50 price target. The analyst has a positive view of Two Harbors Investment Corp. (NYSE:TWO)’s strategy and internally managed structure, but cites near-term risks from the Federal Reserve’s reduction in agency mortgage backed security purchases and potentially rising interest rates.
John Overdeck and David Siegel’s Two Sigma Advisors is one of the leading Two Harbors Investment Corp. (NYSE:TWO) stakeholders from the third quarter of 2021, with a position worth roughly $28 million. Overall, 31 hedge funds were bullish on Two Harbors Investment Corp. (NYSE:TWO) in Q3 2021, with stakes totaling $155.6 million.
4. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Dividend Yield as of January 25: 12.77%
Number of Hedge Fund Holders: 6
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a Maryland-based real estate investment trust that invests primarily in residential mortgage backed securities issued or guaranteed by a United States government-sponsored entity, such as Fannie Mae, Freddie Mac, or Ginnie Mae.
On January 4, ARMOUR Residential REIT, Inc. (NYSE:ARR) declared a $0.10 per share monthly dividend, in line with previous. The dividend will be distributed on January 28, to shareholders of record on January 18.
JonesTrading analyst Jason Stewart on October 28 downgraded ARMOUR Residential REIT, Inc. (NYSE:ARR) to Hold from Buy and removed his prior price target after the company’s distributable earnings miss. With the shares effectively trading at book value per share, the analyst sees the risk versus reward as balanced at current levels.
According to Insider Monkey’s Q3 data, 6 hedge funds reported owning stakes in ARMOUR Residential REIT, Inc. (NYSE:ARR), amounting to $23 million, as compared to 13 funds holding stakes worth $32.2 million in ARMOUR Residential REIT, Inc. (NYSE:ARR) in the prior quarter. David Harding’s Winton Capital Management is a notable shareholder of ARMOUR Residential REIT, Inc. (NYSE:ARR), owning a $1.92 million stake.
3. Cherry Hill Mortgage Investment Corporation (NYSE:CHMI)
Dividend Yield as of January 25: 13.43%
Number of Hedge Fund Holders: 5
Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) is a diversified, hybrid residential mortgage REIT with a portfolio focused on mortgage servicing rights, agency residential mortgage backed securities, and other residential mortgage assets. Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) delivers a 13.43% dividend yield as of January 25.
On December 9, Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) declared a quarterly dividend of $0.27, in line with previous. The dividend was distributed on January 25, to shareholders of record on December 31.
In August 2021, RBC Capital analyst Michael Carroll downgraded Cherry Hill Mortgage Investment Corporation (NYSE:CHMI) to Sector Perform from Outperform with a price target of $24, down from $26. The analyst noted that while the company reported an “in-line” quarter with solid rent collections and a healthy investment pace, some potential concerns are beginning to “percolate” and may result in delayed rent payments.
A total of 5 hedge funds in the Q3 database of Insider Monkey were bullish on Cherry Hill Mortgage Investment Corporation (NYSE:CHMI), with stakes equaling $12.2 million. Renaissance Technologies is the leading stakeholder of the REIT from the third quarter of 2021, holding 807,684 shares worth $7.1 million.
2. Invesco Mortgage Capital Inc. (NYSE:IVR)
Dividend Yield as of January 25: 13.79%
Number of Hedge Fund Holders: 10
Invesco Mortgage Capital Inc. (NYSE:IVR) is an REIT based in Atlanta, Georgia, which focuses on investing in mortgage-backed securities and other mortgage-related assets that are guaranteed by the US government agencies. Invesco Mortgage Capital Inc. (NYSE:IVR) beat market consensus estimates for earnings and revenue in the third quarter of 2021.
Invesco Mortgage Capital Inc. (NYSE:IVR) on December 27 declared a $0.09 per share quarterly dividend, in line with previous. The dividend is payable on January 27, to shareholders of record on January 11.
In the third quarter of 2021, 10 hedge funds tracked by Insider Monkey’s database of elite funds were long Invesco Mortgage Capital Inc. (NYSE:IVR), with stakes totaling approximately $36 million. Beach Point Capital Management is one of the leading stakeholders of Invesco Mortgage Capital Inc. (NYSE:IVR), with 3.1 million shares worth approximately $10 million.
1. Orchid Island Capital, Inc. (NYSE:ORC)
Dividend Yield as of January 25: 16.71%
Number of Hedge Fund Holders: 10
Orchid Island Capital, Inc. (NYSE:ORC) is a Florida-based specialty finance company that invests in residential mortgage-backed securities in the United States.
JonesTrading analyst Jason Stewart on January 24 upgraded Orchid Island Capital, Inc. (NYSE:ORC) to Buy from Hold with a $4.25 price target.
Among the hedge funds tracked by Insider Monkey in Q3 2021, 10 funds were bullish on Orchid Island Capital, Inc. (NYSE:ORC), with stakes totaling $16.1 million. Balyasny Asset Management is the biggest stakeholder of Orchid Island Capital, Inc. (NYSE:ORC), with 1.7 million shares worth $8.4 million.
You can also take a look at 10 Best Dividend Stocks According to Thomas Steyer’s Farallon Capital and Charlie Munger’s Daily Journal Portfolio: Top Stock Picks.
