If you're looking for a high-yielding stock, commercial mortgage real estate investment trust Starwood Property Trust (NYSE: STWD) sports an attractive 8.6% yield. However, this specialized lender offers much more than just a big dividend. As the largest player in the space, Starwood Property is safer than most and has some of the biggest opportunities for growth -- in fact, the stock has a total return of 100% over the last three years.
Just like individuals need a mortgage to buy a home, businesses will use mortgages to acquire commercial property; this is where commercial mortgage REITs come in. These companies primarily make loans and own securities backed by commercial real estate assets. This could include a wide variety of real estate, but for Starwood Property it's mainly hotels and office space. This might sound similar to traditional banks, but there are a few key differences.
Source: Motley Fool
Related Articles:
- Are Storm Clouds Gathering For These 5 High-Yielding Securities?
- Why Dividends Matter
- 6 Stocks Currently Trading Below their Fair Value
- The Perfect Dividend Stock
- Bonds Look Morbid When Compared To These Dividend Stocks
________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.