Safe stocks to buy: invest in stocks of mortgage REITs in 2022
You may not think of real estate as a growth industry, but it has proven to be for decades. As a result, many REITs (real estate investment trusts) invest in various aspects of the real estate market. An MREIT is a company that invests almost exclusively in mortgage-backed securities and real estate. We’ll be looking at two MREITs and determining whether or not they’re safe stocks to buy in 2022.
AGNC Investment (AGNC)
AGNC Investment is one of the best safe stocks in 2022 due to its strong market position and improving fundamentals. AGNC specializes in agency mortgage-backed securities (MBS), which include Fannie Mae and Freddie Mac securities. With the Trump administration’s efforts to strengthen the housing market, these types of investments are likely to receive more funds from investors and, as a result, prices are likely to rise. Diversified portfolio. AGNC’s diversified portfolio of agency MBS, commercial mortgage-backed securities (CMBS) and other real estate investments can be expected to deliver consistent cash flow and predictable earnings. . Solid fundamentals. AGNC Investment’s strong fundamentals include a 6.6% net yield, low leverage and a steadily increasing dividend. It is also widely owned – 82% of it is owned by institutions and individuals.
New York Mortgage Trust (NYMT)
NYMT is one of the top safe stocks to buy in 2022, as it is a leader in mortgage-backed securities markets. It also has a strong history of paying dividends. NYMT specializes in mortgage-backed securities (MBS). These titles are backed by the payments made by the owners on their mortgages. Payments are regular and reliable, and therefore a safe investment. NYMT’s product lineup is heavily focused on MBS agencies, which include Fannie Mae and Freddie Mac titles.
Solid fundamentals. Strong NYMT fundamentals include:
- A net return of 6.2%.
- A low level of debt.
- A dividend that continues to increase.
It is also widely owned – 82% of it is owned by institutions and individuals.
Apollo Commercial Real Estate Financing (ARI)
ARI is one of the best safe stocks to buy in 2022 as it is a leader in the CMBS market. CMBs are mortgage securities secured by income generated from commercial real estate. ARI specializes in investing in CMBSs, which are secured by commercial real estate mortgages. Since commercial real estate properties are much less likely to default than homeowners’ mortgages, these securities are very safe investments. Accordingly, ARI’s product line is heavily focused on commercial mortgage-backed securities (CMBS) and other commercial real estate securities.
Financial MFA (MFA)
MFA Financial is one of the top safe stocks to buy in 2022, as it is a leader in the residential mortgage-backed securities (RMBS) market. RMBS are a type of mortgage collateral that is backed by income generated from home loans. In general, homeowner mortgages are much less likely to default than homeowner mortgages. MFA specializes in investing in RMBS, which are backed by mortgages.