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
-
Here's an eye-opening statistic: older Americans are more afraid of running out of money than of death itself. And unfortunately, even r...
-
Today, we’ll look at three high-yield dividend stocks that have earned a ‘perfect 10’ from the Smart Score. For investors seeking a clear fo...
-
How do you assess risk? Different investors have different approaches, and when a Black Swan event topples the market, risk assessment becom...
-
Master limited partnerships (MLPs) have fallen out of favor with investors in recent years, thanks to a combination of continued turbulence ...
-
Many companies have been suspending their dividends during the COVID-19 crisis, and in many cases it is understandable. In times of economic...
-
While near-term fluctuations in the stock market can be unpredictable, dividends are one of the few reliable sources of market returns. Stoc...
-
With the price of oil rebounding, I wanted to find five cheap energy stocks that have solid dividend yields. In other words, the dividends a...
-
AbbVie (NASDAQ:ABBV) is in the midst of a transition. AbbVie began life about a decade ago when it was spun off from health care and medical...
-
3M Company (NYSE:MMM) is growing its FCF very well, and as a result, MMM stock is likely to move up at least 44% over the next or so. Right ...
-
This article deals with a sensitive subject - prisons, more precisely, US prisons. Regardless of which side of the argument one takes, sadly...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.