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
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
If you are retired, you have likely shifted from building your nest egg to living off your assets. That means you probably gravitate toward ...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
-
REITs are reporting higher revenue and earnings so far for the quarter. But one of the specific metrics for profitability comes from the rat...
0 comments
Post a Comment
Post a Comment