Dividend stocks have gotten increasingly popular in recent years, as alternatives have stopped producing as much income as they once did. Some of the most popular dividend payers in the market were real estate investment trusts specializing in mortgage-backed securities, which produced double-digit dividend yields thanks to their highly leveraged business models. But recently, some popular mortgage REITs have cut their dividends.
In the following video, Fool contributor Dan Caplinger goes through some of the recent dividend cuts among the most popular mortgage REITs, discussing the reasons the dividend favorites are feeling pressure on profits and whether the trend is likely to continue. Dan also points out that some mortgage REITs have managed not to cut dividends, and concludes with a closer look at some of the factors that will affect mortgage REITs in the future.
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