Sectors & IndustriesReal EstateREIT - Mortgage

Best Mortgage REIT Stocks to Buy Now (2024)

Top mortgage reit stocks in 2024 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:

Lument Finance Trust (NYSE:LFT) is the top mortgage reit stock with a Zen Score of 51, which is 24 points higher than the mortgage reit industry average of 27. It passed 19 out of 38 due diligence checks and has strong fundamentals. Lument Finance Trust has seen its stock return 22.17% over the past year, overperforming other mortgage reit stocks by 20 percentage points.

Lument Finance Trust has an average 1 year price target of $2.50, an upside of 0.81% from Lument Finance Trust's current stock price of $2.48.

Lument Finance Trust stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Lument Finance Trust, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Rithm Capital (NYSE:RITM) is the second best mortgage reit stock with a Zen Score of 50, which is 23 points higher than the mortgage reit industry average of 27. It passed 19 out of 38 due diligence checks and has strong fundamentals. Rithm Capital has seen its stock return 14.57% over the past year, overperforming other mortgage reit stocks by 12 percentage points.

Rithm Capital has an average 1 year price target of $12.92, an upside of 19.94% from Rithm Capital's current stock price of $10.77.

Rithm Capital stock has a consensus Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Rithm Capital, 16.67% have issued a Strong Buy rating, 66.67% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Arbor Realty Trust (NYSE:ABR) is the third best mortgage reit stock with a Zen Score of 47, which is 20 points higher than the mortgage reit industry average of 27. It passed 18 out of 38 due diligence checks and has strong fundamentals. Arbor Realty Trust has seen its stock return 4.38% over the past year, overperforming other mortgage reit stocks by 2 percentage points.

Arbor Realty Trust has an average 1 year price target of $13.92, a downside of -8.68% from Arbor Realty Trust's current stock price of $15.24.

Arbor Realty Trust stock has a consensus Hold recommendation according to Wall Street analysts. Of the 6 analysts covering Arbor Realty Trust, 0% 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 33.33% 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:

Invesco Mortgage Capital (NYSE:IVR) has an annual dividend yield of 18.56%, which is 7 percentage points higher than the mortgage reit industry average of 11.82%. 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 -166.7% indicates that its high dividend yield might not be sustainable for the long-term.

Cherry Hill Mortgage Investment (NYSE:CHMI) has an annual dividend yield of 17.65%, which is 6 percentage points higher than the mortgage reit industry average of 11.82%. Cherry Hill Mortgage Investment's dividend payout is not stable, having dropped more than 10% five times in the last 10 years. Cherry Hill Mortgage Investment's dividend has not shown consistent growth over the last 10 years.

Cherry Hill Mortgage Investment's dividend payout ratio of -100% 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 16.79%, which is 5 percentage points higher than the mortgage reit industry average of 11.82%. Orchid Island Capital's dividend payout is not stable, having dropped more than 10% nine 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 -205.7% indicates that its high dividend yield might not be sustainable for the long-term.

Mortgage reit stocks were up 0.82% in the last day, and up 1.03% 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:

Lument Finance Trust (NYSE:LFT) is the most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Lument Finance Trust has a valuation score of 71, which is 44 points higher than the mortgage reit industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Lument Finance Trust's stock has gained 22.17% in the past year. It has overperformed other stocks in the mortgage reit industry by 20 percentage points.

Rithm Capital (NYSE:RITM) is the second most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Rithm Capital has a valuation score of 71, which is 44 points higher than the mortgage reit industry average of 27. It passed 5 out of 7 valuation due diligence checks.

Rithm Capital's stock has gained 14.57% in the past year. It has overperformed other stocks in the mortgage reit industry by 12 percentage points.

Mfa Financial (NYSE:MFA) is the third most undervalued mortgage reit stock based on WallStreetZen's Valuation Score. Mfa Financial 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.

Mfa Financial's stock has gained 34.89% in the past year. It has overperformed other stocks in the mortgage reit industry by 33 percentage points.