Should You Buy This 9.8%-Yielding CRE Finance REIT Right Now?

This company is an interesting income vehicle for high-yield investors. It retains NII-upside. The dividend is about covered with core earnings. Dividend coverage could improve as net interest income grows on the back of rising short-term interest rates. Shares are moderately valued, and throw off a 9.8 percent dividend yield.

Apollo Commercial Real Estate Finance, Inc. (ARI) is a promising high-yield income vehicle for investors that want to bet on a continued strong performance in U.S. commercial real estate. The commercial real estate finance company has considerable net interest income upside in a rising rate environment, which could potentially lead to a significant improvement in dividend coverage, thus ensuring dividend continuity. Shares are moderately valued, leaving room for upside. An investment in ARI yields 9.8 percent.

Source: Seeking Alpha

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