Annaly Capital Management, Inc. (NLY), Two Harbors Investment Corp (TWO): Could Now Be a Good Time to Buy mREITs?

From Q2 2012 to Q1 2013, the company reduced its leverage from 6.8x to 4.3x, increased shareholder equity from $801 million to $1,430 million and drove book value per share from $22.08 to $24.25 – while keeping its dividend payout at $0.90 per share. So, while some risk remains, American Capital Agency Corp. (NASDAQ:AGNC) could benefit from the Fed asset purchase tapering.


It is impossible to try and predict what the Fed will do in the future, and stupid to try and fight it, but these three mortgage REITs offer a good combination of solid historic performance and the potential for a re-rating in the future, if and when the Fed re-thinks its policy.

Fool contributor Rupert Hargreaves has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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