Billionaire Leon Cooperman Is Aggressively Buying This Ultra-High Dividend Stock

PennyMac Mortgage Investment Trust (NYSE:PMT) is a Moorpark, California-based Real Estate Investment Trust (REIT) which primarily invests in mortgage-related assets and residential mortgage loans. The REIT is externally-managed and advised by PennyMac Loan Services and PNMAC Capital Management, LLC. It made its secondary market debut in July, 2009 via an IPO priced at $20 per share. Although shares of PennyMac Mortgage Investment Trust had a spectacular bull run throughout 2012, they began to gradually decline starting in 2013, which has seen them fall to their current level of around $15. This share price collapse coupled with the quarterly dividend of $0.61 per share that the REIT currently pays has resulted in PennyMac Mortgage Investment Trust boasting a terrific annual dividend yield of 16.13%. Owing to such a high annual dividend yield, the REIT recently made it to Insider Monkey’s list of 5 Ultra-High Dividend Stocks that hedge funds love.

PennyMac Mortgage Investment Trust declared its second quarter earnings on August 8, reporting EPS of $0.36 on revenue of $69.80 million, compared to EPS of $0.49 on revenue of $30.22 million that analysts were expecting. This earnings release was followed by the REIT’s announcement on August 19 that it will be buying back $150 million worth of shares. On September 11, analysts at JMP Securities reiterated their ‘Market Outperform’ rating on the stock, while lowering their price target to $19 from $21, which at current market price represents an upside potential of 25.5%.

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