3166: Cash Flow Investments: REITs and Agency Mortgages by JT McGee with The College Investor
Jun 04, 2025•13 min•Ep. 3166
Episode description
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Episode 3166:
JT McGee explores the world of mortgage REITs, explaining how they generate impressive dividend yields by leveraging government-backed and non-agency mortgage securities. He outlines the key risks tied to interest rate movements and offers practical insights on how REITs can fit into a diversified, income-focused portfolio for investors seeking alternatives to traditional fixed-income assets.
Read along with the original article(s) here: https://thecollegeinvestor.com/3589/cash-flow-investments-reits-agency-mortgages/
Quotes to ponder:
"By law, REITs must return 90% of their operating earnings back to shareholders in the form of dividends."
"A bet on any mortgage REIT is essentially a wager that rates will increase very slowly over the next few years."
"For income purposes, nothing will beat a mortgage REIT."
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