Here's How Hannon Armstrong Can Afford Its 6.5% Dividend Yield
There are two broad types of real estate investment trusts (REITs), one that owns properties and one that owns mortgages or loans. They are very different types of companies, and most investors should probably stick to property-owning REITs.
An interesting exception to that rule is Hannon Armstrong Sustainable Infrastructure Capital (NYSE: HASI). Here's why this mortgage REIT is different from other mortgage REITs and why its 6.5% yield looks well supported.
Mortgage REITs (or mREITS) mostly own exactly what the name implies, mortgages. In general, mREITs are a lot more complex than property-owning REITs. And there are more risks to consider, given that interest rates play a major role in the mortgage space, as do property market dynamics.
Source Fool.com