With real estate investment trusts (REITs) required to return 90% of their taxable income to shareholders through dividend payments, the rise in interest rates should prove to be a positive catalyst.
Since mortgage With interest rates up to 6%, REITs will have the upper hand when it comes to earning more interest income. Unfortunately, the downside is high inflationary pressures, which can impact costs and force REITs to charge higher rents.
These 2 real estate mutual funds are yielding over 10% and offering passive income as macro headwinds continue.
Orchard Island Capital Inc ORC offers a dividend yield of 15.79%, or $1.92 per share annually when paid monthly, with a mixed track record of growing its dividends. Orchard Island Capital invests in residential real estate mortgage-collateralised securities (RMBS) in the United States, and the principal and interest payments of their (RMBS) are guaranteed by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Government National Mortgage Association and are individually collateralised -mortgage loans for families .
From the start of the share repurchase program in 2015 through June 30, 2022, Orchard Island has a total of 6,561,810 shares at a total cost of approximately $42.6 million, including commissions and fees, at a weighted average price of $6.49 per share repurchased.
Go to: Potential home sellers and buyers retreated in August as mortgage rates approached 6%
Chicago Atlantic Real Estate Finance Inc REFI offers a dividend yield of 13.43%, or $1.88 per share annually on quarterly payments, with a mixed track record of growing its dividends. Chicago Atlantic Real Estate is a commercial real estate finance company whose primary investment objective is to provide shareholders with attractive risk-adjusted returns over time primarily through consistent ongoing dividends and capital appreciation.
As of June 30, 2022, the…
