By Marc Lichtenfeld A 17% yield with monthly dividends might be as welcome as an island after a shipwreck. But investors who travel to Orchid Island Capital (NYSE: ORC) should be wary of what lurks in this misleadingly lush dividend jungle.
Orchid Island Capital is a mortgage real estate investment trust (REIT) that invests in residential real estate mortgages.
Mortgage REITs borrow money short term and lend it out long term. They have struggled this year due to low interest rates and a narrow and sometimes inverted yield curve.
A narrow yield curve is when the difference between short- and long-term rates is very slim, making …read more
