Sure Dividend

High-Quality Dividend Stocks, Long-Term Plan
Member's Area

8 Highest Yielding Mortgage REITs For Income Investors


Updated on May 15th, 2025 by Bob Ciura

Mortgage Real Estate Investment Trusts (i.e., “REITs”) – often referred to as “mREITs” – can provide a very attractive source of income for investors.

This is because they invest in mortgages that are typically backed by hard assets (commercial and/or residential real estate) with fairly conservative loan-to-value ratios.

Mortgage REITs finance these portfolios with a mixture of equity (that they raise by selling shares to investors) and debt that they generally raise at an interest cost that is meaningfully lower than the interest rates they can command on their real estate mortgage investments.

The result is significant and stable cash flow for the mREIT.

You can download your free 200+ REIT list (along with important financial metrics like dividend yields and payout ratios) by clicking on the link below:

 

Click here to instantly download your free spreadsheet of all REITs now, along with important investing metrics.

Moreover, as REITs they are exempt from having to pay corporate taxes on their net interest income and are required to pay out at least 90% of their taxable income to shareholders via dividends.

This generally means that mREIT shareholders earn very high dividend yields, making mREIT shares an exceptional source of passive income.

Of course, due to their significant amount of leverage, mortgage REITs come with risks that occasionally lead to dividend cuts.

As a result, investors need to be prudent when selecting which mREITs to invest in.

This article will list the 8 highest yielding mortgage REITs in the Sure Analysis Research Database.

Table of Contents

You can instantly jump to any specific section of the article by using the links below:

#8: Blackstone Mortgage Trust (BXMT)

Blackstone Mortgage Trust is a real estate finance company primarily involved in the origination and purchase of senior loans collateralized by commercial properties in North America and Europe.

The vast majority of the company’s asset portfolio is comprised of floating rate loans secured by first priority mortgages primarily derived from office, hotel, and manufactured housing properties.

On April 29, 2025, Blackstone Mortgage Trust reported its financial results for the first quarter of 2025. The company recorded a GAAP net loss of $0.4 million, translating to $(0.00) per share, while Distributable Earnings per share stood at $0.17.

Excluding realized losses from loan resolutions, Distributable Earnings per share were $0.42. The company declared a dividend of $0.47 per share, resulting in a 10% annualized yield based on the quarter-end share price. The book value per share was reported at $21.42, incorporating $4.39 per share of CECL reserves.

During the quarter, Blackstone Mortgage Trust originated $1.6 billion across 14 loans, primarily secured by multifamily properties and cross collateralized industrial and self-storage portfolios, with an average loan-to-value of 64%.

Click here to download our most recent Sure Analysis report on BXMT (preview of page 1 of 3 shown below):

#7: Chimera Investment Corp. (CIM)

Chimera Investment Corporation is a real estate investment trust (REIT) that is a specialty finance company. The company’s primary business is in investing through subsidiaries in a diversified portfolio of mortgage assets, including residential mortgage loans, Non-Agency RMBS, Agency CMBS, and other real estate related securities.

Chimera’s income is predominantly obtained by the difference between the income the company earns on its assets and financing and hedging costs.

The company funds the purchase of assets through several funding sources: asset securitization, repurchase agreements (repo), warehouse lines, and equity capital.

In mid-February, Chimera released (2/12/25) results for the fourth quarter of fiscal 2024. Its core earnings-per-share edged up sequentially, from $0.36 to $0.37, thanks to lower provisions for credit losses.

Chimera has exhibited a markedly volatile performance record over the last decade. It has failed to grow its earnings-per-share over the last decade and posted 10-year low earnings-per-share in 2023. Moreover, the REIT has a high debt load

Click here to download our most recent Sure Analysis report on CIM (preview of page 1 of 3 shown below):

#6: Pennymac Mortgage Investment Trust (PMT)

PennyMac Mortgage Investment Trust invests in residential mortgage loans and mortgage-related assets. The trust focuses on creating mortgage-related assets through its correspondent production activities, which includes mortgage servicing rights. PennyMac operates as a mortgage real estate investment trust (REIT).

PMT has three segments: credit sensitive strategies, interest rate sensitive strategies and correspondent production. PennyMac Mortgage began its operations in 2009 with $324 million of assets, which has grown to $14.9 billion as of March 31st, 2025.

PMT is externally managed by PNMAC Capital Management, which itself is a wholly owned subsidiary of PennyMac Financial Services (PFSI). As a result of being externally managed, PMT has only one employee on record.

PennyMac Mortgage Investment Trust reported first quarter 2025 results on April 22nd, 2025. PMT reported net investment income of $44.5 million, which was a 40% decrease from NII of $74.2 million in the prior year quarter.

The trust generated a ($0.01) loss per share in the quarter, which compares unfavorably to the $0.39 earned in the year-ago quarter.

The book value per share decreased from $15.87 on December 31st, 2024 to $15.43 on March 31st, 2025. In the first quarter, the company added $47 million in new mortgage servicing rights (MSRs).

Click here to download our most recent Sure Analysis report on PMT (preview of page 1 of 3 shown below):

#5: AGNC Investment Corporation (AGNC)

American Capital Agency Corp is a mortgage real estate investment trust that invests primarily in agency mortgage–backed securities (or MBS) on a leveraged basis.

The firm’s asset portfolio is comprised of residential mortgage pass–through securities, collateralized mortgage obligations (or CMO), and non–agency MBS. Many of these are guaranteed by government–sponsored enterprises.

In the fourth quarter of 2024, AGNC Investment Corp. reported a comprehensive loss per common share of $0.99, a reversal from the comprehensive income of $0.93 per share recorded in the previous quarter.

Despite this, the company achieved a positive economic return of 13.2% for the full year, driven by its consistent monthly dividend totaling $1.44 per common share.

The company’s net spread and dollar roll income, excluding catch-up premium amortization, was $0.65 per common share for the quarter, down from $0.67 per share in the prior quarter.

AGNC’s tangible net book value per common share stood at $9.08 as of December 31, 2024, reflecting a decrease from $9.84 at the end of the third quarter.

Click here to download our most recent Sure Analysis report on AGNC Investment Corp (AGNC) (preview of page 1 of 3 shown below):

#4: Dynex Capital (DX)

Dynex Capital invests in mortgage–backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non–agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest–only securities.

Source: Investor Presentation

Dynex Capital released its fourth-quarter 2024 financial results, with book value ending the quarter at $12.70 per share and an economic return of 7.4% for the year.

Leverage increased slightly to 7.9x as the company deployed capital into higher-yielding agency RMBS, particularly 30-year 4.5%, 5%, and 5.5% coupons.

The shift from treasury futures to interest rate swaps was a key strategy, enhancing portfolio returns by 200 to 300 basis points and improving net interest spread.

Click here to download our most recent Sure Analysis report on DX (preview of page 1 of 3 shown below):

#3: ARMOUR Residential REIT (ARR)

ARMOUR Residential invests in residential mortgage-backed securities that include U.S. Government-sponsored entities (GSE) such as Fannie Mae and Freddie Mac.

It also includes Ginnie Mae, the Government National Mortgage Administration’s issued or guaranteed securities backed by fixed-rate, hybrid adjustable-rate, and adjustable-rate home loans.

Unsecured notes and bonds issued by the GSE and the US Treasury, money market instruments, and non-GSE or government agency-backed securities are examples of other types of investments.

In the fourth quarter of 2024, ARMOUR Residential REIT, Inc. reported a GAAP net loss of $49.4 million, or $0.83 per common share. Despite this, the company achieved distributable earnings of $46.5 million, equating to $0.78 per common share, which fell short of the anticipated $0.97. Net interest income for the quarter was $12.7 million.

During this period, ARMOUR raised approximately $136.2 million through the issuance of about 7.2 million shares via an at the market offering program. The company maintained its monthly common stock dividend at $0.24 per share, totaling $0.72 for the quarter.

Click here to download our most recent Sure Analysis report on ARMOUR Residential REIT Inc (ARR) (preview of page 1 of 3 shown below):

#2: Ellington Credit Co. (EARN)

Ellington Credit Co. acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed by a U.S. Government agency or U.S. government–sponsored enterprise.

Agency MBS are created and backed by government agencies or enterprises, while non-agency MBS are not guaranteed by the government.

On March 12th, 2025, Ellington Residential reported its fourth quarter results for the period ending December 31, 2024. The company generated a net loss of $(2.0) million, or $(0.07) per share.

Ellington achieved adjusted distributable earnings of $7.8 million in the quarter, leading to adjusted earnings of $0.27 per share, which covered the dividend paid in the period.

Ellington’s net interest margin was 5.07% overall. At quarter end, Ellington had $31.8 million of cash and cash equivalents, and $79 million of other unencumbered assets.

Click here to download our most recent Sure Analysis report on EARN (preview of page 1 of 3 shown below):

#1: Orchid Island Capital, Inc. (ORC)

Orchid Island Capital, Inc. is an mREIT that is externally managed by Bimini Advisors LLC and focuses on investing in residential mortgage-backed securities (RMBS), including pass-through and structured agency RMBSs.

These financial instruments generate cash flow based on residential loans such as mortgages, subprime, and home-equity loans.

In the fourth quarter of 2024, Orchid Island Capital, Inc. reported a net income of $0.07 per share, a decrease from $0.24 per share in the previous quarter. The company’s book value declined from $8.40 at the end of the third quarter to $8.09 at year-end.

As of December 31, 2024, Orchid Island Capital’s portfolio consisted of approximately $4.2 billion in residential mortgage-backed securities (RMBS), with a net weighted average coupon of 3.5%. The company’s leverage ratio stood at 8.1 times, reflecting its strategy of utilizing leverage to enhance returns.

Click here to download our most recent Sure Analysis report on Orchid Island Capital, Inc. (ORC) (preview of page 1 of 3 shown below):

Conclusion

As you can see from the dividend yields offered by the ten stocks discussed in this article, mREITs can be powerful passive income generators.

However, investors need to be careful before investing in this sector, given that dividend cuts can be common during periods of economic stress. As a result, diversification and a focus on quality are essential.

Additional Reading

You can see more high-quality dividend stocks in the following Sure Dividend databases, each based on long streaks of steadily rising dividend payments:

Alternatively, another great place to look for high-quality business is inside the portfolios of highly successful investors.

By analyzing the portfolios of legendary investors running multi-billion dollar investment portfolios, we are able to indirectly benefit from their million-dollar research budgets and personal investing expertise.

To that end, Sure Dividend has created the following two articles:

You might also be looking to create a highly customized dividend income stream to pay for life’s expenses.

The following lists provide useful information on high dividend stocks and stocks that pay monthly dividends:

Thanks for reading this article. Please send any feedback, corrections, or questions to support@suredividend.com.



articles
Golden Rule Commitment
contact - legal - testimonials