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
-
If you’ve been following this column, you’d know that monthly dividend stocks tend to come from two main types of businesses: real estate an...
-
Late last year, Wall Street had a bit of a panic attack when Fed chairman Jerome Powell suggested this tightening was on autopilot. While th...
-
Are you sick and tired of low interest rates? Certificates of deposit pay next to nothing. Bonds yield only three or four percent a year. Su...
-
These three picks are all up more than 10% so far in 2019. The three themes are LNG, specialized healthcare, and small banks. The yields ran...
-
This company makes a compelling value proposition on the dip for DGI investors. The REIT has strong portfolio stats and a conservative AFFO-...
-
Stocks with high dividend yields can be great, but if a stock has a high dividend yield and also has lots of long-term growth potential and ...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
This company makes a compelling value proposition based on valuation, risk/reward, yield, and upside potential. I added this hotel REIT las...
-
At its opening price of $101 per share on Jan. 7, MSFT stock had a market cap of $782 billion, which made it the most valuable company in th...
-
Before the painful fourth-quarter stock market decline, steady dividend payers probably weren’t foremost in many investors’ minds. After all...
0 comments
Post a Comment
Post a Comment