Why American Capital Mortgage Is Ready to Rebound

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

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

MTGEfacts

Headquarters (founded)

Bethesda, Md. (2011)

Market Cap

$1.1 billion

Industry

Mortgage REITs

Trailing-12-Month Revenue

$222.4 million

Management

Chairman / CEO Malon Wilkus
President / Chief Investment Officer Gary Kain

Trailing-12-Month Normalized Net Income Margin

57.2%

Cash / Debt

$1.9 billion / $7.8 billion

Dividend Yield

17.4%

Competitors

Capstead Mortgage 
MFA Financial


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

On CAPS, 98% of the 89 members who have rated MTGE believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star fearandgreed2005, tapped MTGE as a particularly attractive income opportunity:

Stock already beaten down in anticipation of rising interest rates. Huge [dividend yield] of 17% and capital appreciation after rates stabilize will cause stock to outperform. Rising long term rates and low short term rates will be positive for earnings. Solid management team will be able to steer the company through the present short-term turmoil.

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The article Why American Capital Mortgage Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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