Should I Buy Orchard Island Capital (ORC)? Finance YouTuber Analysis

The YouTuber recommends avoiding Orchid Island Capital due to its consistent dividend cuts and negative total return over five years. While it offers a high yield, its performance has been severely impacted by the mortgage market downturn and specific management issues, performing worse than other mREITs.

“Orchid Island at Capital has suffered from the memory from the mortgage disaster but also some management problems there that is causing it to causing it to perform so poorly against even other inmates”

The YouTuber suggests ORC, a mortgage REIT, noting its high dividend yield and that fears about rising short-term rates are likely already priced into the stock, making it attractively valued. Despite potential dividend volatility, ORC has historically maintained a higher dividend yield than its peers.

“shares are down 19 since mid-november and really attractively valued at this point so the dividend payment on this one is going to be more volatile than a lot of the stocks because the company pays out most of that cash flow and that cash flow rises and falls along with interest rates”