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
-
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 ...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
Add it all up, and things are starting to get tense. That leaves investors wondering where they can go for safety. After years of tech outpe...
-
Individual investors were jolted by the sudden reappearance of market volatility in October. Given a range of issues spanning natural gas av...
-
Are you on the hunt for a generous and reliable dividend stock? If so, the list of Dividend Aristocrats -- comprised of those few companies ...
-
If you’ve paid any attention to the financial news lately, you’d know that market sentiment has changed. This shouldn’t come as a surprise; ...
-
Dividend-paying stocks are like the ballast that keeps a ship from capsizing during stormy seas. They provide grounding for investors who, w...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Without a doubt, buying and holding stocks is the best way to generate wealth over long periods of time. And we're not talking about hol...
0 comments
Post a Comment
Post a Comment