IMH, diversity, & mortgage industry

When I wrote about IMH in April, the stock was under 20.00/share. Last time I wrote about IMH and dividends for choppy markets, it was priced in the low 20s. We’re looking at a bit over 26.00/share now. A look at the chart comparing IMH to the S&P shows that IMH does not follw the broader market. This makes it a nice holding for people who want to diversify. The staeady dividends have been nice too. Currently at 3.00/share we’re looking at better than 11% dividend yield.

Since IMH deals with mortgages, it’s important to note that rates have fallen to the lowest they’ve been in 5 years. It’s ahrd to say exactly what this means for IMH. On the one hand lower rates might signal lower profit margins, but if people are encouraged to refinance their homes there’s an opportunity for increased business. Analysing the mortgage industry is out of my league, so (as always) do your own research before investing in any of the stocks I write about.

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