PennyMac Mortgage Investment Trust

PennyMac Mortgage Investment Trust is a specialty finance company based in Westlake Village, California and founded in 2009. The company primarily invests in mortgage-related assets in the United States and has three segments: Credit Sensitive Strategies, Interest Rate Sensitive Strategies, and Correspondent Production.

The Credit Sensitive Strategies segment of PennyMac Mortgage Investment Trust invests in credit risk transfer (CRT) agreements, CRT securities, distressed loans, real estate, and non-agency subordinated bonds. Its Interest Rate Sensitive Strategies segment engages in investing in mortgage servicing rights, excess servicing spreads, and agency and senior non-agency mortgage-backed securities (MBS) and related interest rate hedging activities. The Correspondent Production segment is involved in the purchase, pooling, and reselling of newly originated prime credit residential loans directly or in the form of MBS.

PennyMac Mortgage Investment Trust is managed by PNMAC Capital Management, LLC and has been registered as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, the company is not subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its shareholders.

The company is publicly traded on the New York Stock Exchange (NYSE) and has a current market capitalization of $1.97 billion, with shares trading under the ticker symbol “PMT”. Over the past five years, the company has delivered a total return of 320%, while the S&P 500 has yielded a total return of 140%. In addition, PennyMac Mortgage Investment Trust has an annual dividend yield of 11.2%, which has grown nearly 10% year over year. The company has also consistently delivered strong earnings growth, with diluted earnings per share for 2019 coming in at $1.78, representing a 24.4% increase year over year.