Anyone who borrowed money to buy a house would know how much of a burden it is to pay off their mortgage. But now, there could be a way for homeowners to make it even. The investment I’m about to show you uses the money from other people’s mortgage payments to pay dividends to its investors. The return is pretty substantial. In the current market, the investment offers an annual dividend yield of 10.27%.
The company in question is Apollo Commercial Real Estate Finance Inc. (NYSE:ARI), a real estate investment trust (REIT) headquartered in New York City. While many REITs are in the business of owning and leasing properties, Apollo is a bit different. The company does not invest in physical properties directly. Instead, it specializes in commercial mortgages. Apollo REIT uses a direct origination platform to generate first mortgage and subordinate loans across a wide range of property types. These include residential, retail, healthcare, office, and industrial properties. The loan-to-value (LTV) ratio of the company’s first mortgages range from 0% to 65%. For subordinate loans, LTV is typically between 50% and 75%.
Source: Income Investors
Related Articles:
- The Most Dangerous Investment
- 9 Dividend Stocks Beating The 4% Rule
- You Can't Spend Earnings
- Why Dividends Matter
- Hey, You Invest Like a Girl!
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
It’s no secret that most investors who buy high-yield stocks are looking for income. But every once in a while, yield hunters may come acros...
-
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 ...
-
Dividend-paying securities are the major sources of consistent income when returns from the equity market are at risk. Why Growth-Focused Di...
-
Not all stocks that pay high dividends are too good to be true. In fact, some stocks with high yields have lots of room to grow, or they tra...
-
After an abysmal 2018, real estate investment trusts (REITs) have been on a roll this year. After pulling one of the worst performances sinc...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Cheap stocks can be hard to find in a high-flying market like the current one. The S&P 500 is flirting with all-time highs following its...
-
The past few years, I’ve urged readers to study a little-followed group of businesses I consider “cash cows.” Large investors generally igno...
-
Large-cap consumer staples companies are not known for making big moves in their share prices. But on the morning of Monday, April 22, Kimbe...
-
Apple (NASDAQ:AAPL) started up its current dividend program back in 2012 after years of refusing to give back even a single cent to its shar...
0 comments
Post a Comment
Post a Comment