Hold - Price 10.50 on May 19
by Jefferies & Co.

We expect credit performance to work against this externally managed commercial-mortgage real-estate investment trust over the next 12 months. While we acknowledge NCT's economic-book-value discount, we believe current credit risks outweigh likelihood of near-term multiple expansion. We're reducing our target to 10 based on a 14% yield applied to our '09 dividend forecast of $1.40. Market cap: $554 million.

The leader of the pack is Newcastle Investment (ticker: NCT), which puts its money into real-estate securities and other real-estate-related assets. It recently traded at 12.76, for a 22.57% yield.

@ bottom, high dividend

I love high-yield dividend value stocks

chart pattern

Yielding around 20%, run by Fortress

good dividend and future
like the others caught in credit crunch

Coming in with a projected 19.1% return was Newcastle Investment (ticker: NCT). Currently priced at a bit above 18, Newcastle, which has a $1 billion market-capitalization, invests in credit-sensitive real-estate securities, including commercial and residential mortgage-backed securities and unsecured REIT debt. Residential loans account for about 10% of its portfolio, with the rest spread out over retail, office, industrial, health-care and other property types.

17.7%

big dividend, unfairly knocked down with sub-prime mortgage players

too risky