Best Stock for 2013: Two Harbors Investment Corp.
His reasons for the buy of the Silver Bay Realty Trust (NYSE:SBY) spinoff: TWO has been snatching up single-family homes over the last three years, and it yields a whopping 19%.
Steve explains, “Yep, you read that right … 19%. True, the recent $0.55 payout announcement skews the yield (previous dividends were $0.36 and $0.40 quarterly), but even if the yield normalizes, it’s still north of 12%.”
He’s pretty confident, too — especially for a newcomer.
“Did I mention I feel great about this trade?” he asks. The real question, though, is how great he will feel come December.
Let the games begin!