REITs have served as safe havens for weary investors and also those looking for a reliable source of passive income. The top REITs certainly receive their fair share of attention from the mainstream investment media. However, there are plenty of other REITs available for investment that retail investors often overlook.

Part of the challenge of pinpointing the best REITs lies in determining which are the most stable, which have the most upside, and which have the most attractive yields. Some overlooked mortgage REITs have yields in excess of 5%.
 
Below, we provide a look at three REITs with attractive yields: Chimera Investment Corporation (CIM), Granite Point Mortgage Trust (GPMT), and Dynex Capital (DX).
 
Chimera Investment Corporation (CIM)

CIM is a real estate finance REIT. The company invests in residential mortgage loans either directly or through a subsidiary. CIM has a relatively low forward P/E ratio of 10.45. This ratio indicates the stock is likely underpriced at $15.34 per share.

CIM has a beta of 0.97 meaning it is unlikely to fluctuate much even if the market becomes rocky. CIM is currently trading about 40 cents below its 52-week high of $15.77. The stock’s 52-week low is $8.05. Perhaps most important is the fact that CIM’s annual dividend is 7.81%.

CIM has a B POWR Rating. The stock has a B Quality component grade along with Cs in the Momentum, Value, and Growth components. You can find out how CIM fares in the rest of the POWR Ratings components such as Sentiment and Stability by clicking here.

Out of nearly 30 stocks in the REITs – Mortgage space, CIM is ranked sixth. You can find out more about the stocks in this category by clicking here.

Granite Point Mortgage Trust (GPMT)

GPMT’s focus is on senior floating rate commercial mortgages. The company also generates revenue through additional loans and debt vehicles such as investments in commercial real estate.

GPMT is currently priced at $15.32. The stock’s 52-week high is $15.92. GPMT has a forward P/E ratio of 11.34 meaning there is an argument to be made that it is underpriced. The stock’s beta of 1.54 indicates it won’t wildly fluctuate should the market get choppy.

GPMT has a B POWR Rating so it qualifies as a Buy. The stock has Cs in the Sentiment, Value, Growth, and Stability components of the POWR Ratings. You can find out how GPMT grades out in the remainder of the POWR Ratings components such as Quality and Momentum by clicking here.

GPMT is ranked first out of 29 stocks in the REITs – Mortgage sector. Investors can learn more about the stocks in this segment by clicking here.

Dynex Capital (DX)

DX’s revenue stems from mortgages and other forms of consumer financing. The company’s loans constitute the investments in DX’s overarching portfolio. At the moment, DX specializes in the origination of mortgages for multi-family properties and manufactured homes. DX is also expanding its business to include loans for commercial real estate buyers.

DX has a forward P/E Ratio of 10.16. This means the stock might be slightly underpriced at $19.25 per share. The stock’s 52-week high is $20.51. CIM’s 52-week low is $13.25.

DX is a POWR Ratings success with a B overall grade. The stock has a B grade in the Quality and Value components of the POWR Ratings. DX has C grades in the Momentum and Sentiment components. Click here to learn more about how DX grades out in the Stability and Growth components of the POWR Ratings.

DX is ranked third of nearly 30 stocks in the REITs – Mortgage space. You can find out more about the REITs – Mortgage stocks by clicking here.

The analysts expect DX to move higher, setting an average target price of $20.70 for the stock. If DX hits this price point, it will have increased by nearly 3%. The highest target price for DX is $21.50 while the low is $19.50. Of the half dozen analysts who have issued recommendations for DX, two consider it a Strong Buy, one considers it a Buy, and three consider it a Hold.