This REIT is cheap, sells for ~9.5x run-rate core earnings. Strong fundamentals in the CRE market (demand for loan originations) support an investment in it. The REIT has interest rate upside, investors could see a dividend raise in 2018/9. The dividend has a high degree of dividend safety for a nine percent yielder. An investment in the stock yields 9.2 percent.
One of the best companies to buy for a high-quality income portfolio is Starwood Property Trust, Inc. (STWD), in my opinion. The commercial mortgage REIT benefits from strong demand for loan originations, and the lending business has significant interest rate upside. Starwood Property Trust is moderately valued on a run-rate core earnings basis. I recommend investors to add the REIT on major dips as the dividend has proven to be sustainable. An investment in Starwood Property Trust yields 9.2 percent.
Source: Seeking Alpha
Related Articles:
- 5 Big-Name Dividend Stocks Crushing The S&P 500
- How To Be a Better Investor During Difficult Times
- 4 Higher-Yielding, Low Debt Stocks With A Tiny Payout Ratio
- 3 Stocks Increasing Dividends Like A Champion
- The Next Great Company
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
You know what's good to see in one of your holdings? Management actually doing what they said they were going to do. The yield is 9.97%,...
-
It's impossible to follow the specific investing strategies of the world's best investors. After all, we don't always know why t...
-
Many investors focus their portfolios on either growth stocks (if they're a long way from retirement) or income stocks (if they're n...
-
Regulators typically set customer rates for utilities to ensure investors recover a fair return on capital and allows the businesses keep th...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Market volatility is scarily high. Interest rates on sidelined cash are scarily low. Investors looking to de-risk or take some profits off o...
-
When dividend-paying companies are undervalued, investors stand to gain a constant stream of dividend income on top of capital gains, as ove...
-
Holding a stake in great businesses that regularly pay dividends and then reinvesting those payouts is one of the most dependable paths to l...
-
Most monthly payers are REITs of some kind – and a good chunk are mortgage REITs, which are facing rising interest rates. Some ETFs also off...
0 comments
Post a Comment
Post a Comment