Hot Oil Service Companies To Watch In Right Now

Hot Oil Service Companies To Watch In Right Now: MFA Financial Inc (MFA)

MFA Financial, Inc., incorporated on July 24, 1997, is engaged in the business of investing, on a leveraged basis, in residential Agency mortgage-backed securities (MBS) and Non-Agency MBS. Its business objective is to generate net income for distribution to its stockholders resulting from the difference between the interest and other income it earn on its investments and the interest expense it pays on the borrowings, which it uses to finance its leveraged investments and its operating costs. Its operating policies require that at least 50% of its investment portfolio consist of ARM-MBS, which are either Agency MBS or rated in two rating categories by at least one of rating agency, such as Moody's Investors Services, Inc., Standard & Poor's Corporation (S&P) or Fitch, Inc. The remainder of its assets may consist of direct or indirect investments in other types of MBS and residential mortgage loans; other mortgage and real estate-related debt and equity; and other yiel d instruments.

The mortgages collateralizing the Company's MBS portfolio are Hybrids, ARMs and 15-year fixed-rate mortgages. The Hybrids collateralizing its MBS typically have fixed-rate periods ranging from three to 10 years. Interest rates on the mortgage loans collateralizing its ARM-MBS reset based on specific index rates, which include London Interbank Offered Rate (LIBOR) or the one-year constant maturity treasury (CMT) rate. The mortgages collateralizing its ARM-MBS have interim and lifetime caps on interest rate adjustments. The Company's Non-Agency MBS have been at discounts to face/par value.

Advisors' Opinion:

• [By Kingkarn Amjaroen]

  American Capital Mortgage is no exception here: The mortgage REIT trades at a 12% discount to its net asset value, while peer firm MFA Financial (NYSE: MFA  ! ;) trades at a 6% book value discount and Capstead Mortgage (NYSE: CMO  ) already manages to trade at book value.

• [By Dan Burrows]

  SAN stock also has some nice momentum early in the second quarter, breaking above both its 50- and 200-day moving averages.

  Cheap Dividend Stocks #5: MFA Financial (MFA)

  Share Price as of 4/4: $7.78
  YTD Stock Performance: 10%
  Dividend Yield: 10.4%

• [By Rich Duprey]

  After raising its payout last quarter by 10%, residential mortgage-backed securities REIT MFA Financial (NYSE: MFA  ) announced today it was keeping its second-quarter dividend steady at $0.22 per share.

source from Top Stocks For 2015:http://www.topstocksblog.com/hot-oil-service-companies-to-watch-in-right-now-3.html