Friday, May 31, 2013

A Sustainable And Growing 8% Yield

There is a fair amount of market skepticism when it comes to mREITs. Many have paid dividends in excess of the sustainable magnitude, which temporarily props up the stock price and erodes book value, leading to the eventual crash. Northstar Realty Finance (NRF), however, offers a sustainable and growing 7.99% yield.

Northstar Realty Finance represents an excellent risk adjusted opportunity. The large yield is sustainable by both earnings and CAD. Expect continued dividend raises as the tremendous 2013 acquisition volume kicks in. Between multiple expansion as NRF's diversification is recognized and tremendous earnings growth, it could substantially outperform.

Source: Seeking Alpha

Related Articles:
- A Disciplined Approach To Dividend Stocks
- 6 High-Yield REITs With Growing Dividends
- International Diversification May Be Closer than You Think
- 10 Dividend Stocks With A 10% Yield In 10 Years
- Free Cash Flow Payout vs. Dividend Payout

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