How can companies that already pay out a good chunk of their money to shareholders manage to increase their dividends? Four words: positive interest rate sensitivity. I just doubled down on shares of this company for my income portfolio. Three reasons stood out why I bought into the mortgage REIT. I discuss those in the article. An investment in it yields 8.07 percent.
I have doubled down on Blackstone Mortgage Trust, Inc. (BMXT) this week because I see the REIT as a promising income vehicle that has capital upside on the back of its floating-rate loan portfolio. The real estate finance company has invested heavily in variable-rate assets, which will serve the REIT well as long as the Federal Reserve keeps lifting interest rates. I think Blackstone Mortgage Trust will not only be able to maintain its current dividend rate, but actually grow it in lockstep with rising short term interest rates.
Source: Seeking Alpha
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