5 REITs Paying Jaw-Dropping 10%+ Yields And Pay Cash Monthly

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If you’re looking for safety and high yields, you may want to consider real estate investment trusts (REITs), especially those with yields above 10%.

Making them even more attractive, REITs allow you to earn passive income from a managed portfolio of income-producing real estate without ever having to own real estate.

“Because of the strong dividend income REITs provide, they are an important investment both for retirement savers and for retirees who require a continuing income stream to meet their living expenses. REITs’ dividends are substantial because they are required to distribute at least 90% of their taxable income to their shareholders annually. Their dividends are fueled by the stable stream of contractual rents paid by the tenants of their properties,” says REIT.com.

That being said, here are five hot REITs with yields above 10%.

ARMOUR Residential REIT 

With a yield of 18.71%, the ARMOUR Residential REIT (NYSE: ARR) invests primarily in fixed-rate residential, adjustable-rate rate and hybrid adjustable-rate residential mortgage-backed securities issued or guaranteed by U.S. government-sponsored enterprises or guaranteed by the Government National Mortgage Association. 

The REIT just declared a monthly dividend of 24 cents per share, which is payable on September 29 to shareholders of record as of September 15. If you were to invest $10,000 in the ARR REIT, you’d own about 649 shares. Using an annualized dividend of $2.88, you’d collect just under $1,870. And all you had to do was buy and hold the stock.

After pulling back from about $16.50 to $14.60, the ARR ETF is just starting to pivot higher again. Last trading at $15.40, we’d like to see it rally to $17.50 near term.

Orchid Island Capital 

With a yield of 20%, Orchid Island Capital (NYSE: ORC) is a specialty finance company that invests in residential mortgage-backed securities on a leveraged basis. Income generated for distribution to its shareholders is based primarily on the difference between the yield on mortgage assets and the cost of borrowings, as noted on its site.

The REIT is about to pay out a 12-cent monthly dividend on September 29 to shareholders of record as of August 29. Technically, ORC has been consolidating at around a $7 since July. From here, we’d like to see it break out with a test of $7.80 near term.

If you were to invest $10,000 in the ORC REIT, you would own 1,400 shares. Using an annualized dividend of $1.44, you could collect annual income of $2,106.

AGNC Investment 

With a yield of 15.7%, AGNC Investment (NASDAQ: AGNC) is a REIT that invests in residential mortgage-backed securities, where principal and interest payments are guaranteed by the U.S. government or a U.S. government agency. It just declared a 12-cent dividend, which is payable on September 10 to shareholders of record as of Aug. 29.

If you were to invest $10,000 into AGNC, you’d own about 1,000 shares. Using an annualized AGNC dividend of $1.44, you would collect about $1,440 in annual income just by buying and holding the AGNC stock.

Technically, after finding support at around $7.40 in April, the AGNC REIT rallied to $9.95. From here, we’d like to see it initially test $15 a share.

Ellington Financial 

With a yield of about 11.5%, Ellington Financial (NYSE: EFC) invests in residential and commercial mortgage loans, residential and commercial mortgage-backed securities, consumer loans, and asset-backed securities backed by consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, debt, and equity investments in loan origination companies.

It just declared a monthly dividend of 13 cents per share, which is payable on September 30 to shareholders of record as of August.

As noted by CEO and President Laurence Penn, “We generated net income of $0.45 per share, equating to an annualized economic return of 13.8% for the quarter, with book value per share increasing quarter over quarter to $13.49. Meanwhile, our adjusted distributable earnings per share increased sharply by $0.08 to $0.47, significantly exceeding our $0.39 of dividends.”

If you were to invest $10,000 in EFC, you’d own about 731 shares. Using an annualized dividend of $1.56, you can collect about $1,140.36 a year.

Two Harbors Investment

With a yield of 13.8%, Two Harbors Investment (NYSE: TWO) invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States.

It just paid out a quarterly dividend of 39 cents, which was payable on July 29 to shareholders of record as of July 3. If you invested $10,000 in TWO, you’d own about 1,000 shares. Using an annualized dividend of $1.56, you could collect about $1,560 in passive income.

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