Image Source: PixabayMFA Financial Inc (MFA) is a specialty finance company that invests in and finances residential mortgage assets.Its principal business objective is to deliver shareholder value through the generation of distributable income and through asset performance linked to residential mortgage credit fundamentals.The company selectively invests in residential mortgage assets with a focus on credit analysis, projected prepayment rates, interest rate sensitivity and expected return. The company is an internally managed real estate investment trust or REIT.The company was incorporated in 1997 and is based in New York City, New York.Three key data points gauge MFA Financial Inc or any dividend paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.MFA PriceMFA’s share price fell 0.07% in the past year from $11.07 to $10.99 as of Monday’s market close.In the past 3 years the company’s share price has rarely been less than $7.25 nor more than $18.90. It did reach an all time high of $44.28 in February, 2008.If shares trade in the range of $8.00 to $16.00 this next year, the recent $10.99 share price might grow to $14.00. Of course, MFA shares could also drop about the same $3.01 estimated amount, or more.My $3.01 price upside estimate is nearly $2 under the median of one-year target prices projected by eight analysts tracking MFA for brokersMFA DividendMFA Financial Inc has paid variable quarterly dividends since August 1998. The company’s most recent Q dividend of $0.35 was declared September 16th for shareholders of record September 27th and the payout was made October 31st.The forward annual dividend of $1.40 yields 12.74% per Tuesday’s closing price.MFA ReturnsPutting it all together, a $4.41 estimated annual gross gain per share shows up by adding MFA’s annual $1.40 dividend to the estimated price upside of $3.01, totaling that $4.41 gross gain.A little over $1000 buys 91 shares at Friday’s $10.99 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.11 per share out of the $4.41 gross-gain to give us a net gain of $4.30 X 91 shares = $391.30 for about a 39% estimated net gain for the year.Furthermore, the $127.40 annual estimated dividend paid from $1k invested is over 11.5 times greater than the $10.99 single share price. By these numbers, MFA may be an ideal financial dividend dog.Therefore, you might choose to pounce on MFA Financial Inc. It is a 27 year-old Quarterly dividend paying real estate investment trust with a 26-year dividend record.The exact track of MFA’s future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:Current Report: Invesco Mortgage Capital
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