Like most high-yield income vehicles, this company has had a good run lately. Shares of the largest commercial mortgage REIT in the U.S. have risen ~23 percent in the last year as investors moved funds into interest rate-sensitive assets. Despite the increase in its valuation, I think the reward-to-risk combination still looks compelling here, largely because the REIT has excellent dividend coverage, interest rate upside (read: dividend upside) and is reasonably valued on a run-rate core earnings basis.
Starwood Property Trust, Inc. (NYSE:STWD) is a top shelf income vehicle with potential to grow its valuation and its dividend. For one thing, Starwood Property Trust has strong dividend coverage that protects shareholders' dividends. Further, the commercial mortgage real estate investment trust has earnings upside related to its floating rate loan investment portfolio that is likely to get a boost if the Federal Reserve pushes interest rates higher in 2017.
Source: Seeking Alpha
Related Articles:
- 5 Low-Risk, High-Yielding Dividend Stocks
- 9 Dividend Stocks For A Rainy Day
- 6 Dividend Growth Stocks With Strong Capital Appreciation
- 6 Higher Yielding Basic Materials Stocks With Growing Dividends
- 7 Dividend Growth Stocks That Could Make You Wealthy
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
For income investors who want to use the “buy-and-hold” strategy, few things are better than monthly dividends. The problem is that among th...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
Yields can rise in one of two ways: An increase to the dividend, or a cut to the share price. Thus, you often get high-single-digit and even...
-
They may not be the most popular dividend stocks, but they have a lot to offer your portfolio. Not every investment opportunity has to be ac...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Today’s chart highlights my favorite place to find safe seven percent, nine percent, and even 12% yields: mortgage real estate investment tr...
-
When sitting down today and looking for investments worth owning over the next 20 years, my first question was where to begin looking. Lucki...
-
The internet revolution connected billions of people to the web, and the Internet of Things (IoT) could have a similarly revolutionary effec...
0 comments
Post a Comment
Post a Comment