Sectors & IndustriesReal EstateREIT - Mortgage

Best Mortgage REIT Stocks to Buy Now (2025)

Top mortgage reit stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best mortgage reit stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best mortgage reit stocks to buy right now are:

Rithm Capital (NYSE:RITM) is the #1 top mortgage reit stock out of 40 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Rithm Capital (NYSE:RITM) is: Value: A, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Rithm Capital (NYSE:RITM) has a Due Diligence Score of 42, which is 16 points higher than the mortgage reit industry average of 26.

RITM passed 16 out of 38 due diligence checks and has strong fundamentals. Rithm Capital has seen its stock return 8.19% over the past year, overperforming other mortgage reit stocks by 16 percentage points.

Rithm Capital has an average 1 year price target of $13.92, an upside of 13.24% from Rithm Capital's current stock price of $12.29.

Rithm Capital stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Rithm 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.

Annaly Capital Management (NYSE:NLY) is the #2 top mortgage reit stock out of 40 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Annaly Capital Management (NYSE:NLY) is: Value: C, Growth: B, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Annaly Capital Management (NYSE:NLY) has a Due Diligence Score of 37, which is 11 points higher than the mortgage reit industry average of 26.

NLY passed 14 out of 38 due diligence checks and has average fundamentals. Annaly Capital Management has seen its stock return 4.36% over the past year, overperforming other mortgage reit stocks by 12 percentage points.

Annaly Capital Management has an average 1 year price target of $20.58, a downside of -1.19% from Annaly Capital Management's current stock price of $20.83.

Annaly Capital Management stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Annaly Capital Management, 50% have issued a Strong Buy rating, 33.33% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Cherry Hill Mortgage Investment (NYSE:CHMI) is the #3 top mortgage reit stock out of 40 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Cherry Hill Mortgage Investment (NYSE:CHMI) is: Value: C, Growth: A, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Cherry Hill Mortgage Investment (NYSE:CHMI) has a Due Diligence Score of 13, which is -13 points lower than the mortgage reit industry average of 26.

CHMI passed 4 out of 38 due diligence checks and has weak fundamentals. Cherry Hill Mortgage Investment has seen its stock lose -16.2% over the past year, underperforming other mortgage reit stocks by -9 percentage points.

Out of 36 mortgage reit stocks that have issued dividends in the past year, the 3 mortgage reit stocks with the highest dividend yields are:

Orchid Island Capital (NYSE:ORC) has an annual dividend yield of 20.14%, which is 10 percentage points higher than the mortgage reit industry average of 10.64%. Orchid Island Capital's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Orchid Island Capital's dividend has not shown consistent growth over the last 10 years.

Orchid Island Capital's dividend payout ratio of 847.1% 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 19.3%, which is 9 percentage points higher than the mortgage reit industry average of 10.64%. 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 405.3% indicates that its high dividend yield might not be sustainable for the long-term.

Lument Finance Trust (NYSE:LFT) has an annual dividend yield of 18.22%, which is 8 percentage points higher than the mortgage reit industry average of 10.64%. Lument Finance Trust's dividend payout is not stable, having dropped more than 10% eight times in the last 10 years. Lument Finance Trust's dividend has not shown consistent growth over the last 10 years.

Lument Finance Trust's dividend payout ratio of 195.2% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were down -0.22% in the last day, and up 1.1% over the last week.

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

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued mortgage reit stocks right now are:

Rithm Capital (NYSE:RITM) is the most undervalued mortgage reit stock based on its Valuation Rating of A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Rithm Capital has a valuation score of 43, which is 16 points higher than the mortgage reit industry average of 27. It passed 3 out of 7 valuation due diligence checks.

Rithm Capital's stock has gained 8.19% in the past year. It has overperformed other stocks in the mortgage reit industry by 16 percentage points.

Angel Oak Mortgage Reit (NYSE:AOMR) is the second most undervalued mortgage reit stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Angel Oak Mortgage Reit has a valuation score of 14, which is -13 points higher than the mortgage reit industry average of 27. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates AOMR a Valuation Rating of "B".

Angel Oak Mortgage Reit's stock has dropped -18.02% in the past year. It has underperformed other stocks in the mortgage reit industry by -11 percentage points.

Invesco Mortgage Capital (NYSE:IVR) is the third most undervalued mortgage reit stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Invesco Mortgage Capital has a valuation score of 57, which is 30 points higher than the mortgage reit industry average of 27. It passed 4 out of 7 valuation due diligence checks.

Invesco Mortgage Capital's stock has dropped -11.84% in the past year. It has underperformed other stocks in the mortgage reit industry by -4 percentage points.

36.36% of mortgage reit stocks rated by analysts are a strong buy right now. On average, analysts expect mortgage reit stocks to rise by 10.02% over the next year.

0% of mortgage reit stocks have a Zen Rating of A (Strong Buy), 0% of mortgage reit stocks are rated B (Buy), 53.85% are rated C (Hold), 41.03% are rated D (Sell), and 5.13% are rated F (Strong Sell).