To preserve BV, put a $20 under your Mattress - Invest to earn income
This shows how deeply out of favor this sector is with Wall Street. Everyone assumes these stocks should trade at a substantial discount to NAV, and what they earn doesn't matter.
Fine, put a $20 under the mattress, and it will preserve BV wonderfully, and earn nothing (Essentially AGNC's strategy).
On the other hand, a company earning a 22% yield is trashed. Well, I'm glad my $16 share of WMC EARNS $3.20 a share in income, that's why I invest.
Give me another sector where stocks trade at a discount to BV in this market...and earn, and yield anything near this.
Most BDC's trade at a premium to BV (a book value which is much harder to determine the true value of), and earn much less. NYMT trades at a premium to BV, and will earn less than WMC.
If your primary focus is preservation of BV, may I recommend a US treasury bond.
The book value has been dropping for a few quarters in a row, so Wall Street naturally prices these like the BV will keep dropping forever.
When BV rises for next quarter (for the MReits that aren't triple-cross hedged into a knot), and the income is still sky high, the 'inevitability" of a 10% discount to BV will change, and these will be chasing to catch up to a rising BV, with a sky high income to boot. Then it will be a good time to sell.