Dallas, Texas 01/03/2014 (FINANCIALSTRENDS) – MFA Financial, Inc. (NYSE:MFA) is a $2.59 billion market capped firm which invests in “residential agency backed mortgage-backed securities (MBS) and Non-Agency MBS”. In the past 12 months, it has generated total sales worth $502 million and has accumulated net income of $277 million in the same period. Readers should note that this real estate investment trust has been a strong dividend payer to its investors. In the past 12 months, it has paid out dividends of $0.8 per share to its share holders. This translates into a 11.3 percent dividend yield for the year.
In spite of solid dividend payout record, the stock of MFA Financial, Inc. (NYSE:MFA) has really been struggling to show positive gains to its stock holders in the past year. While for the entire year, its share holders have seen their assets grow by 3.06 percent, these gains get diluted when one considers the past six months of trading. This is because the stock has lost 4.5 percent of its market value during trading in the last two quarters and just about manages to turn green with a 0.5 percent growth in the past one month of its trading activities.
This relative weakness in the stock of MFA Financial, Inc. (NYSE:MFA) seems difficult to explain because the general economy surrounding the real estate market in U.S has picked up by leaps and bounds in the past six to eight months. In fact a report which was published by the U.S department of Census has pegged the growth in singe household property purchases to have grown by a solid 13 percent in the month of November 2013 in comparison to November 2012. This increase come on the back of a credible increase in the hosing sector growth in the month of October too.