Perhaps my favorite hotel real estate investment trust is Ashford Hospitality Trust (AHT). For around 10 years, this public REIT has been repeatedly knocking the cover off the ball, but the market has rarely gotten around to valuing AHT stock properly. I’m not sure what the deficiency is, other than that Ashford Hospitality may not have some big, flashy name. Yet when you examine all the metrics and note that Ashford’s management has been in the hotel business for 25 years, through all the booms and busts, there is simply no reason for AHT stock to be trading at its current bargain price
So I suggest jumping into Ashford shares and collecting the 6% yield while the stock catches up to fair value. Ashford makes a good number of deals in the hotel business. Because of management’s acumen, AHT is able to manage operations that align with market conditions and maximize its margins. Management was particularly adept at handling the financial crisis in 2008 and beyond by proactively drawing down lines of credit and using interest rate hedges to generate additional income during a period when the hotel industry saw revenue declines of more than 15%.
Source: InvestorPlace
Related Articles:
- A Disciplined Approach To Dividend Growth Stocks
- 5 Low Beta, Higher Yielding Dividend Stocks For The Next Downturn
- 7 High-Yield REITs With Growing Dividends
- 26 Income Securities For A Well-Rounded Asset Allocation
- International Diversification May Be Closer than You Think
Ashford Hospitality: Get Rich While Waiting for a Rebound (AHT)
Posted by D4L | Friday, September 25, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
Some investors — usually referred to as income investors — specifically set out to buy securities that pay them even before stock price appr...
-
Are you looking for a great dividend stock to add to your portfolio? There are many options out there, but the reality is that many just don...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Both of the listed stocks are often discussed on the Reddit page, and for very different reasons. The former pays a frequent special dividen...
-
When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous stra...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.