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:

Apollo Commercial Real Estate Finance (NYSE:ARI) is the #1 top mortgage reit stock out of 39 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 Apollo Commercial Real Estate Finance (NYSE:ARI) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Apollo Commercial Real Estate Finance (NYSE:ARI) has a Due Diligence Score of 22, which is -5 points lower than the mortgage reit industry average of 27.

ARI passed 9 out of 38 due diligence checks and has weak fundamentals. Apollo Commercial Real Estate Finance has seen its stock return 8.66% over the past year, overperforming other mortgage reit stocks by 18 percentage points.

Apollo Commercial Real Estate Finance has an average 1 year price target of $10.83, an upside of 7.9% from Apollo Commercial Real Estate Finance's current stock price of $10.04.

Apollo Commercial Real Estate Finance stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Apollo Commercial Real Estate Finance, 33.33% have issued a Strong Buy rating, 33.33% have issued a Buy, 33.33% 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 39 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: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Annaly Capital Management (NYSE:NLY) has a Due Diligence Score of 35, which is 8 points higher than the mortgage reit industry average of 27.

NLY passed 13 out of 38 due diligence checks and has average fundamentals. Annaly Capital Management has seen its stock return 12.07% over the past year, overperforming other mortgage reit stocks by 21 percentage points.

Annaly Capital Management has an average 1 year price target of $21.71, a downside of -2.58% from Annaly Capital Management's current stock price of $22.29.

Annaly Capital Management stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Annaly Capital Management, 42.86% have issued a Strong Buy rating, 28.57% have issued a Buy, 28.57% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Sunrise Realty Trust (NASDAQ:SUNS) is the #3 top mortgage reit stock out of 39 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 Sunrise Realty Trust (NASDAQ:SUNS) is: Value: B, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Sunrise Realty Trust (NASDAQ:SUNS) has a Due Diligence Score of 37, which is 10 points higher than the mortgage reit industry average of 27.

SUNS passed 15 out of 38 due diligence checks and has average fundamentals. Sunrise Realty Trust has seen its stock lose -30.4% over the past year, underperforming other mortgage reit stocks by -21 percentage points.

Sunrise Realty Trust has an average 1 year price target of $11.00, an upside of 12.02% from Sunrise Realty Trust's current stock price of $9.82.

Sunrise Realty Trust stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Sunrise Realty Trust, 0% have issued a Strong Buy rating, 100% 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 34 mortgage reit stocks that have issued dividends in the past year, the 3 mortgage reit stocks with the highest dividend yields are:

Lument Finance Trust (NYSE:LFT) has an annual dividend yield of 24.82%, which is 14 percentage points higher than the mortgage reit industry average of 11.28%. Lument Finance Trust's dividend payout is not stable, having dropped more than 10% nine 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 350% indicates that its high dividend yield might not be sustainable for the long-term.

Orchid Island Capital (NYSE:ORC) has an annual dividend yield of 18.36%, which is 7 percentage points higher than the mortgage reit industry average of 11.28%. 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 313% 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 17.38%, which is 6 percentage points higher than the mortgage reit industry average of 11.28%. 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 302.1% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were down -0.1% in the last day, and up 0.86% 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 B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Rithm Capital has a valuation score of 57, which is 25 points higher than the mortgage reit industry average of 32. It passed 4 out of 7 valuation due diligence checks.

Rithm Capital's stock has dropped -1.43% in the past year. It has overperformed other stocks in the mortgage reit industry by 8 percentage points.

Invesco Mortgage Capital (NYSE:IVR) 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.

Invesco Mortgage Capital has a valuation score of 57, which is 25 points higher than the mortgage reit industry average of 32. It passed 4 out of 7 valuation due diligence checks.

Invesco Mortgage Capital's stock has dropped -5% in the past year. It has overperformed other stocks in the mortgage reit industry by 4 percentage points.

Nexpoint Real Estate Finance (NYSE:NREF) 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.

Nexpoint Real Estate Finance has a valuation score of 43, which is 11 points higher than the mortgage reit industry average of 32. It passed 3 out of 7 valuation due diligence checks.

Nexpoint Real Estate Finance's stock has dropped -14.5% in the past year. It has underperformed other stocks in the mortgage reit industry by -5 percentage points.

45.71% of mortgage reit stocks rated by analysts are a buy right now. On average, analysts expect mortgage reit stocks to rise by 11.48% 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), 86.11% are rated C (Hold), 11.11% are rated D (Sell), and 2.78% are rated F (Strong Sell).