5-Star Stocks Poised to Pop: PennyMac Mortgage Investment

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT PennyMac Mortgage Investment (NYS: PMT) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at PennyMac's business and see what CAPS investors are saying about the stock right now.

PennyMac facts

Market Cap$562.4 million
IndustryREIT
Trailing-12-Month Revenue$111.7 million
ManagementChairman/CEO Stanford Kurland
President/COO David Spector
Trailing-12 Month Return on Equity14.9%
Cash/Debt$16.5 million / $812.4 million
Dividend Yield11.9%
CompetitorsAnnaly Capital Management
Capstead Mortgage
MFA Financial

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 58 members who have rated PennyMac believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, danablanca, tapped PennyMac as a solid income opportunity:

[C]ompany is run by experienced management. [B]uying loan pools for pennies on the dollar, modifying or selling at a high profit margin. [A]lso making money a servicing agent and in addition building its correspondent lending channels. [T]hey will become the "new and improved Countrywide" minus the mistakes. Great dividend while we wait for the money to roll in. 

Of course, despite its strong five-star rating, PennyMac may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published

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