Monday, February 10, 2014

AG Mortgage Preferred Stocks: Opportunities And Risks

Posted by Doug K. Le Du, Author of Preferred Stock Investing at 12:55 PM
AG Mortgage Investment Trust (MITT), a mortgage real estate investment trust (mREIT), has a $475 million market cap with two preferred stocks currently trading on U.S. stock exchanges. These traditional preferred stocks, neither of which are rated by either Moody's or Standard & Poor's, are offering an average current yield of 8.78 percent (February 7, 2014).

The question for preferred stock investors is whether the lack of independent ratings and the price-reducing effects of an increasing rate environment can be overcome by this mREIT's demonstrated ability to maneuver its portfolio, these securities' 8+ percent, cumulative dividends and a nice capital gain in the event of a downstream redemption...

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