High yield income vehicles often pay shareholders a high dividend which may, or may not, be sustainable. That said, though, some high yield income vehicles actually come with dividend upside, and this company surely is one such company that investor may want to place at the top of their shopping lists. The reason for this is that the company's dividend coverage measures tilt the odds in favor of a dividend hike in 2017, and this is especially true if the Federal Reserve keeps on pushing short term interest rates higher.
Apollo Commercial Real Estate Finance (NYSE:ARI) is a high yield income vehicle that is still worth buying. Though shares have hit a new 52 week high lately, the commercial real estate finance company convinces with strong dividend coverage stats. Further, the company may soon hike its dividend as operating earnings get a lift from higher interest rates tied to the company's floating rate loan portfolio. Apollo Commercial Real Estate Finance, in a nutshell, is a commercial real estate debt provider that invests in performing first mortgage loans, subordinate loans, commercial mortgage backed securities, and other instruments. First mortgage loans and subordinate loans make up the bulk of the real estate company's investment portfolio. Way more than 80 percent of loans are floating rate, potentially leading to a significant operating earnings boost in an environment of rising interest rates.
Source: Seeking Alpha
Related Articles:
- How To Manage Your Dividend Portfolio In A Downturn
- 5 Tech Stocks With A History of Growing Their Dividends
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 8 Dividend Stocks With A 15% Yield In 15 Years
High Yield Stock Pays 10%, Strong Dividend Coverage Stats, Dividend Upside
Posted by D4L | Wednesday, March 29, 2017 | 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...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Investors looking for the best dividend stocks for 2021 and beyond should take a closer look at the stocks with the longest histories of ann...
-
Some investors — usually referred to as income investors — specifically set out to buy securities that pay them even before stock price appr...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
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...
-
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 ...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...

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