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Buy the Dip in these Intriguing REITs: DBRG, IVR, NYMT

Investors looking for potential bargain opportunities amid the stock market’s rebound may want to consider several REITs that have made their way onto the Zacks Rank #1 (Strong Buy) list.

Most appealing to their real estate exposure is that these stocks are trading under $12, making the risk-to-reward favorable as economic uncertainty continues to fade.

 

DigitalBridge Group – DBRG

Stock Price: $11

DigitalBridge Group (DBRG - Free Report)  is an intriguing REIT as its investments focus on fiber networks, macro cell towers, and data centers, which are crucial to supporting the growth of 5G technology, cloud computing, and artificial intelligence.

Having over $100 billion in assets, DigitalBridge Group has brushed past the profitability line in recent years and is expecting over 20% EPS growth in fiscal 2025 and FY26. Furthermore, DBRG stock could become a popular name due to its concentration on next-generation digital infrastructure. DBRG has soared off its 52-week lows of $6 in early April but is still 34% from its year-long high of $17 seen last October.

Zacks Investment Research
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Invesco Mortgage Capital – IVR

Stock Price: $7

Managing residential and commercial mortgage-backed securities, including mortgage loans, Invesco Mortgage Capital’s (IVR - Free Report)  valuation also attests to the notion that its stock is cheap. To that point, IVR trades at just 3X forward earnings despite EPS expected to fall to $2.26 this year versus $2.88 in 2024. While FY26 EPS is projected to dip another 12%, IVR currently offers a whopping 18.5% annual dividend.

Of course, only time will tell if Invesco Mortgage will be able to sustain such a lofty dividend, but the company’s rapid top line expansion does suggest its operating efficiency should stabilize, especially as it adjusts to the fluctuations in mortgage rates. Plus, IVR doesn’t have a volatile 52-week range, with a low of $5.86 a share and a high of $9.97.

Zacks Investment Research
Image Source: Zacks Investment Research

 

New York Mortgage Trust – NYMT

Stock Price: $6

Expecting a significant rebound on its bottom line, New York Mortgage Trust (NYMT - Free Report)  is worthy of consideration with a very generous 12.26% annual dividend. Even better, NYMT trades at a reasonable 10.5X forward earnings multiple, and like Invesco Mortgage, has a low-volatile 52-week range which makes its stock more appealing on the dip.

Better still, FY25 and FY26 EPS estimates have spiked over the last 60 days, with New York Mortgage having a leveraged portfolio of residential mortgage securities and operating a mortgage origination business.

Zacks Investment Research
Image Source: Zacks Investment Research

 

Honorable Mention

Trading at penny stock status at under $5 a share, Ares Commercial Real Estate (ACRE - Free Report)  and Braemar Hotels & Resorts (BHR - Free Report)  are two more affordable REITs to consider on the dip with a Zacks Rank #1 (Strong Buy). Both are expected to post positive adjusted EPS next year and have annual dividends of 13.27% and 10%, respectively.

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