Sectors & IndustriesReal EstateREIT - Mortgage

Best Mortgage REIT Stocks to Buy Now (2023)

Top mortgage reit stocks in 2023 ranked by overall Zen Score. See the best mortgage reit stocks to buy now, according to analyst forecasts for the reit - mortgage industry.

According to Zen Score, the 3 best mortgage reit stocks to buy right now are:

Rithm Capital (NYSE:RITM) is the top mortgage reit stock with a Zen Score of 45, which is 23 points higher than the mortgage reit industry average of 22. It passed 16 out of 38 due diligence checks and has strong fundamentals. Rithm Capital has seen its stock lose -27.94% over the past year, overperforming other mortgage reit stocks by 9 percentage points.

Rithm Capital has an average 1 year price target of $10.80, an upside of 40.08% from Rithm Capital's current stock price of $7.71.

Rithm Capital stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Rithm Capital, 40% have issued a Strong Buy rating, 40% have issued a Buy, 20% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Starwood Property Trust (NYSE:STWD) is the second best mortgage reit stock with a Zen Score of 44, which is 22 points higher than the mortgage reit industry average of 22. It passed 15 out of 38 due diligence checks and has strong fundamentals. Starwood Property Trust has seen its stock lose -29.53% over the past year, overperforming other mortgage reit stocks by 8 percentage points.

Starwood Property Trust has an average 1 year price target of $25.40, an upside of 50.74% from Starwood Property Trust's current stock price of $16.85.

Starwood Property Trust stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Starwood Property Trust, 60% have issued a Strong Buy rating, 40% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Dynex Capital (NYSE:DX) is the third best mortgage reit stock with a Zen Score of 41, which is 19 points higher than the mortgage reit industry average of 22. It passed 15 out of 38 due diligence checks and has strong fundamentals. Dynex Capital has seen its stock lose -26.7% over the past year, overperforming other mortgage reit stocks by 10 percentage points.

Dynex Capital has an average 1 year price target of $14.13, an upside of 20.21% from Dynex Capital's current stock price of $11.75.

Dynex Capital stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Dynex Capital, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 33 mortgage reit stocks that have issued dividends in the past year, the 3 mortgage reit stocks with the highest dividend yields are:

Armour Residential Reit (NYSE:ARR) has an annual dividend yield of 23.51%, which is 9 percentage points higher than the mortgage reit industry average of 14.32%. Armour Residential Reit's dividend payout is not stable, having dropped more than 10% nine times in the last 10 years. Armour Residential Reit's dividend has not shown consistent growth over the last 10 years.

Armour Residential Reit's dividend payout ratio of -58.5% indicates that its high dividend yield might not be sustainable for the long-term.

Invesco Mortgage Capital (NYSE:IVR) has an annual dividend yield of 21.16%, which is 7 percentage points higher than the mortgage reit industry average of 14.32%. Invesco Mortgage Capital's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. Invesco Mortgage Capital's dividend has not shown consistent growth over the last 10 years.

Invesco Mortgage Capital's dividend payout ratio of -25.4% indicates that its high dividend yield might not be sustainable for the long-term.

Chimera Investment (NYSE:CIM) has an annual dividend yield of 20.63%, which is 6 percentage points higher than the mortgage reit industry average of 14.32%. Chimera Investment's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. Chimera Investment's dividend has not shown consistent growth over the last 10 years.

Chimera Investment's dividend payout ratio of -44.6% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were up 2.57% in the last day, and up 2% over the last week.

We couldn't find a catalyst for why mortgage reit stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued mortgage reit stocks right now are:

Dynex Capital (NYSE:DX) is the most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Dynex Capital has a valuation score of 43, which is 24 points higher than the mortgage reit industry average of 19. It passed 3 out of 7 valuation due diligence checks.

Dynex Capital's stock has dropped -26.7% in the past year. It has overperformed other stocks in the mortgage reit industry by 10 percentage points.

Ready Capital (NYSE:RC) is the second most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Ready Capital has a valuation score of 43, which is 24 points higher than the mortgage reit industry average of 19. It passed 3 out of 7 valuation due diligence checks.

Ready Capital's stock has dropped -37.29% in the past year. It has performed in line with other stocks in the mortgage reit industry.

Chicago Atlantic Real Estate Finance (NASDAQ:REFI) is the third most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Chicago Atlantic Real Estate Finance has a valuation score of 43, which is 24 points higher than the mortgage reit industry average of 19. It passed 3 out of 7 valuation due diligence checks.

Chicago Atlantic Real Estate Finance's stock has dropped -23.89% in the past year. It has overperformed other stocks in the mortgage reit industry by 13 percentage points.