When most investors look toward real estate for their portfolios, they do so from the point of view of owning physical properties. But much higher yields can be had by focusing on mortgages and loans made to property developers. Case in point, our latest addition to our Best Monthly Dividend Stocks List. By focusing on a special niche, our pick has managed to deliver a hefty 11% yield to its shareholders.
The key is that our pick makes so-called hard money loans. These short-term, specialized loans for real estate are used by a variety of developers and property buyers in order to get the capital they need quickly – and our pick happens to be one of the largest in the business.
This provides it with a needed edge to close deals quickly and begin earning interest on its loans. Meanwhile, a conservative-focused management has allowed our pick to keep its borrowing costs low while making plenty of money from the spread of its assets.
In the end, our prick provides a unique real estate play – one that provides a very high yield.
In order to make room for our new mortgage pick, we’ve been forced to remove a triple-net real estate owner from the portfolio.
You can check out the Best Monthly Dividend Stocks List to explore all the stocks.
