American Capital Agency Corp. (AGNC): Real Estate Investments, A Mortgage REIT Portfolio

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Taking all the above into account, I would assign PennyMac a portfolio weight of 50%.

Bottom line

The three trusts named above offer great returns and they are among the least leveraged plays within their peer groups. Besides, they trade at relatively low book value multiples and they have been among the best performers. The portfolio that I assembled in this post will provide your overall portfolio with a high long-term expected yield of 13.6% without the over-leverage that usually comes with agency MREITs.

Federico Zaldua has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Real Estate Investments: A Mortgage REIT Portfolio originally appeared on Fool.com.

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