9%-Yielding REIT in a Steady Bull Market Advance

by Sam Collins | March 21, 2013 1:39 am

PennyMac Mortgage Investment Trust (NYSE:PMT[1]) — 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.

03 21 12 pmt 300x199 9% Yielding REIT in a Steady Bull Market Advance
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chart key 300x84 9% Yielding REIT in a Steady Bull Market Advance[2]

Endnotes:
  1. PMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=PMT
  2. [Image]: http://investorplace.com/wp-content/uploads/2011/04/chart-key.gif

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