Eagle Point Income: 19% Discount Makes The Common Stock A Buy

Eagle Point Income's common stock trades at a 19% discount, near its historical lows, with a 13.1% dividend yield. EIC has outperformed peers, delivering a 3-year total return on NAV of 11.64%, substantially above its peer group. I calculate an adjusted ROE of 6.5% for EIC common, making it more attractive than the preferred (EICA), which yields 5.11% near par. Despite the typical preference for preferreds, I recommend EIC common over EICA due to a higher adjusted ROE and a deep discount.