With interest rates rising again, companies with a variable asset base are preferred investments for income investors. Higher interest rates translate into higher interest income related to floating-rate debt investments. Since the Federal Reserve is expected to lift interest rates at least two times more in 2017 (the central bank hiked twice, in December last year and in March), companies with positive asset sensitivity are poised to do well this year. This company is a good choice for income investors. The commercial mortgage lender has robust dividend coverage. An investment in it yields 8.43 percent.
Ladder Capital Corp.'s (NYSE:LADR) high dividend income and earnings upside, tied to an increase in short-term interest rates, are the two biggest reasons to consider the commercial mortgage lender for a dividend portfolio. Ladder Capital's floating-rate investments are poised to deliver higher interest income in an environment of higher short-term interest rates, which in turn tilts the odds in favor of a dividend hike. Ladder Capital has good dividend coverage, and an investment in the lender pays shareholders an eight percent dividend.
Source: Seeking Alpha
Related Articles:
- 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
- A Roadmap To Build Wealth With Dividend Stocks
Why Not Buy This 8.4% Yielder For Income And Growth?
Posted by D4L | Saturday, June 10, 2017 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
Even in the current inflationary environment, where stocks across a wide variety of sectors are trading down, companies with a favorable his...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
Linked here is a detailed quantitative analysis of Chevron Corporation (CVX). Below are some highlights from the above linked analysis: Comp...
-
Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) is crushing the market this year as value and dividend stocks have pulle...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.