Monthly Dividend ETFs To Buy #4: UBS E-TRACS Monthly Pay 2x Mortgage REIT ETN (MORL)
Dividend Yield: 20%
Sometimes a 3, 4 or even 7% dividend yield isn’t even enough. For those investors, the UBS E-TRACS Monthly Pay 2x Mortgage REIT ETN (MORL) and its 20% yield could be for you. And no, that wasn’t a typo.
MORL adds leverage to an already high-yielding sector — mortgage real estate investment trusts. These firms don’t actually own physical buildings, but make or buy loans tied to commercial or residential real estate. Often they will borrow money themselves to help finance their own activities. The sector isn’t normally for the faint of heart, as changes in interest rate policy and economic issues generally mean plenty of volatility for the sector.
However, for those investors willing to take the plunge, the mREITS and MORL could be a great dividend play.
Again, that 22% isn’t risk-free, and investors probably don’t want to bet the farm on the ETN. But at only 0.40% in expenses, MORL could be an interesting dividend ETF satellite pick for those looking to juice their income.