Should I Buy Ellington Residential Mortgage (EARN)? Finance YouTuber Analysis

Hogue suggests Ellington Residential Mortgage as a stock to watch, noting its 14.3% dividend yield. He explains that as a mortgage REIT, it profits from borrowing short-term and investing long-term, a strategy that has been challenged by the inverted yield curve. However, he anticipates that when the yield curve normalizes, these mREITs will become attractive investments.

“that yield curve should go back to normal eventually though and when that happens these imates will be stocks to watch”

The YouTuber advises avoiding EARN, another mREIT, due to its significant dividend cuts and low total return over five years. He emphasizes that while the market may rebound, investors should focus on companies that manage bad times well, and EARN has been among the worst-hit mREITs.

“I would still avoid some of these worst hit these worst performing mortgage rates and and look forward to the the other ones on the list that have performed better even over the last couple of years”