That iShares Trust iShares Mortgage Real Estate ETF SEM has 50 holdings evenly diversified across small, mid, and large-cap stocks, and also invests less than half of its assets in the financial services sector. The iShares Mortgage ETF is down nearly 31% year-to-date as rising mortgage rates have pushed the market price higher from real estate companies.

Mortgage real estate investment trusts (REITs) offer the highest five-year average dividend yield of any REIT sector at 10.8%. Because of this, you might want to invest in a mortgage REIT (mREIT) with above-average returns.

Because these two mortgage REITs are trading at a discount to book value, it can be an interesting swing trade to buy a run-down real estate investment trust.

Also read: Looking for double digit returns? 3 Mortgage REITs You Can Buy for Less Than They’re Worth – By This Measure

PennyMac Mortgage Investment Trust PMT offers a dividend yield of 13.50%, or $1.88 per share annually on quarterly payments, with a rare track record of growing its dividend payments. PennyMac Mortgage is a specialty finance company investing primarily in residential mortgage loans and mortgage-related assets.

Chairman and CEO of PennyMac David Spector commented in the third-quarter news release, “Significant income contributions from our Manufacturing and Services segments drove a 16% annualized return on equity and growth in book value per share, even as mortgage rates have risen to their highest levels in more than a decade.” The book value PennyMac’s per share rose to $68.26 per share from $65.38 per share on June 30, 2022.

Chimera investment company CIM offers a dividend yield of 13.59%, or 92 cents per share annually through quarterly payments, with a mixed track record of increasing its dividends. Chimera Investment is a real estate mutual fund that invests in a portfolio of mortgage investments on a leveraged basis.

Since its inception, Chimera has…