Quick Read – REM passes its mREIT dividends through to investors, making its payout hostage to two holdings that control 36% of net assets. – Annaly raised its quarterly payout to $0.70, while AGNC has held its $0.12 monthly distribution steady for 24 consecutive months,…
rviving the entire rate cycle from 2022 through 2026. – REM is up 14% over the past year but down 8% over five years, penalizing investors who spent distributions rather than reinvesting them. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and iShares Mortgage REIT Capped ETF didn’t make the cut. Grab the names FREE today
The iShares Mortgage Real Estate ETF (NYSEARCA:REM) is the go-to vehicle for investors who want concentrated exposure to mortgage REITs and the double-digit distribution yield that comes with them. REM holds $531.5 million in net assets across 37 positions, and almost every dollar of its distribution flows up from the dividends those underlying mREITs pay. That makes REM’s payout only as safe as the cash flows at Annaly, AGNC, and a handful of other rate-sensitive names.
With the yield curve flattening and Treasury yields elevated, that question deserves a careful look. How REM Actually Pays You REM is a pass-through. It tracks an index of mortgage REITs, collects their dividends, deducts the 0.5% expense ratio, and distributes what is left.