Get in on the Next Housing Boom

04/30/2013 10:15 am EST


Brentt Taylor of offers his take on five financial stocks with high ratings and handsome appreciation.

Investors looking for an investment with yields higher than government bonds, and with the potential for large increases, may want to look at mortgage stocks. The S&P has increased 3.6% this year-a significant jump. However, many of the mortgage stocks listed have jumped 12% or more during this same period.

These top five companies in the mortgage industry are currently outperforming many other similar stocks, as well as the market average. Listed as A+ and rated as a Buy, these five companies are expected to see phenomenal growth during 2013.

Oritani Financial (ORIT) is a New Jersey-based bank that offers a full range of financial products including mortgages. This stock is highly-rated because of its outstanding performance over the last few years. The company has recently announced that it will be increasing dividends by 16.7% for the first quarter of 2013. Additionally, dividends have increased by 133% since the first quarter of 2012.

Hingham Institution Savings (HIFS) is a Massachusetts-based bank that has continued to show growth for the last 19 years, despite the banking crisis of 2007. Dividends have been paid for 77 consecutive quarters, with special dividend issued to shareholders every year for the last 18 years. Year-to-date growth is at 8.8% with an anticipated rate of this or higher for the remainder of the year.

Berkshire Hills Bancorp (BHLB) is a holding company for Berkshire Insurance Group ad Berkshire Bank. The company offers a large variety of financial and wealth management services. A new Board of Directors has been installed, and immediately following the installation, the company began to see tremendous growth. Year-to-date performance is at 8.3%. Forecasted growth for this stock is anticipated at 15.78%. What makes this so significant is that industry growth for this sector for 2013 is only anticipated at 0.1%.

Radian Group (RDN) provides mortgage insurance to private individuals, risk management services to lending institutions, and they package mortgages to sell on the secondary market. Stock prices have risen for this company nearly 14% in the last 30 days. This is in comparison to the 3.6% increase seen in the market in which it is listed.

Home Bancorp (HBCP) is the holding company for Louisiana-based Home Bank, which offers many different financial services, including personal mortgages. Stock prices have increased by $4.00 per share over the last few months. At this time, Home Bancorp does not pay dividends. This stock is highly-rated due to the stability and potential for growth.

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