You’ve read in this space before about the tremendous year that real estate investment trusts (REITs) are having — in terms of the high double-digit percentage dividend yields they’re paying investors. Well, Orchid Island Capital Inc. (ORC) does regular REITs one better. It combines the income-generating power of a REIT with the gathering momentum of financial sector companies to pay out a remarkable 17.58 percent monthly yield. That’s because ORC is a specialty finance company, clothed as a REIT. The company focuses on two types of Agency residential mortgage-backed securities (RMBS): pass-through Agency RMBS and structured Agency RMBS, such as collateralized mortgage obligations (CMOs), among other things. Payments for pass-throughs consist of both interest and principal on the securities and are generally made monthly, which adds up to a yield of 17.58 percent for ORC investors. Not bad.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: