Are These Mortgage REITs Too Risky Right Now? A long-standing tenet of investing holds that the greater the risk, the greater the reward. But every investor has a different tolerance for accepting risk. One measure of a stock’s risk is its beta, or how it compares with the entire stock market. A beta of 1.0 is said to be on par with the general market. A beta above 1.0 carries a higher risk, while anything below 1.0 is a lower risk. Mortgage REITs, also known as mREITs, are among the highest-yielding dividend stocks on Wall Street but often have high beta levels. Even the more well-known mREITs, such as Annaly Capital Management Inc. (NYSE: NLY ), has a beta of 1.21, meaning its risk level is significantly higher than the general market. Other mREITs such as Orchid Island Capital Inc. (NYSE: ORC ), hold a substantial risk-reward level to the investor. Orchid’s beta is 1.31 but its five-year dividend yield is over 18%. MFA Financial Inc. (NYSE: MFA ) is an mREIT currently priced at $10.64 that offers a 15.7% dividend yield. Many investors with limited capital may be inclined to buy a low-priced stock like MFA with the hope of growing their wealth through a strong dividend.