Housing has been a big winner over the last year or so, as home prices and a surge in activity have made it the sector du jour with investors. For those firms operating in the industry, these truly are the halcyon days. Our latest pick in our Best High Dividend Stocks Model Portfolio is a prime example of that.
Our pick is considered a specialty real estate finance company. That is, it provides capital for mortgages and other real estate investments. This market segment provides plenty of steady cash flows for the firm, while reducing some of the risks with directly operating a property. The real win for our pick has continued to be its other tangential housing-related businesses. These keep the cash flowing during both good times and bad, which helps to reduce its own interest rate risks. With rates rising, this diversification will help our firm navigate the waters with ease.
And since it’s structured as a REIT, investors can profit via its pass-through nature and high dividend. With strong cash flows and a current high yield, investors should watch for the stock ex-dividend on Friday, July 15 (estimated date).
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
