12 Highest Dividend Paying Mortgage Stocks

 | Mar 11, 2013 08:02AM ET

The mortgage investment industry is complex. In recent years, many people lost huge amounts of money during the financial crises if they were invested in this area. But the industry is also considered liquid for traders and has some of the best yielding stocks on the market.

The average yield amounts to 4.66 percent and the average P/E ratio is at 15.10. With a recovering house market, mortgage firms are seeing improvements to their accounted assets.

12 listed mortgage firms pay dividends to investors. Five of them have a yield of more than 10 percent and 10 are currently recommended to buy. .

Arlington Asset Investment (AI) has a market capitalization of $332.73 million. The company employs 11 people, generates revenue of $64.15 million and has a net income of $191.83 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $41.79 million. The EBITDA margin is 65.14 percent (the operating margin is 65.07 percent and the net profit margin 299.01 percent).

Financial Analysis: The total debt represents 76.61 percent of the company’s assets and the total debt in relation to the equity amounts to 341.61 percent. Due to the financial situation, a return on equity of 59.16 percent was realized. Twelve trailing months earnings per share reached a value of $15.11. Last fiscal year, the company paid $3.50 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 1.68, the P/S ratio is 5.19 and the P/B ratio is finally 0.72. The dividend yield amounts to 13.80 percent and the beta ratio has a value of 2.06.