PennyMac Mortgage Investment Trust (NYSE:PMT) — This specialty finance company invests in residential mortgage loans and mortgage-related assets. Its primary objective is to maximize the value of the mortgage loans, a substantial portion of which may be distressed and thus purchased at a discount. It accomplishes this through loan modification programs, special servicing, and focusing on keeping the borrowers in their homes or profitably liquidating the property and securing the loan.
As a real estate investment trust (REIT), it must pay out 90% of taxable income to shareholders. PMT pays a $2.28 annual dividend for a current yield of 9%.
Technically, the stock is in a steady bull market advance supported by a modestly angled bullish support line and solid 200-day moving average, now at $22.50. Despite the correction from its high at over $28, support has held and the MACD is on a buy signal. Buy at the market as a long-term holding for growth and income.