Starwood Property: Lock In This 9.5% Yield At A Discount
Summary
- Starwood Property Trust offers a 9.5% dividend yield, providing a high-income opportunity in a low-yield market with diversified real estate investments.
- STWD's conservative management focuses on safer multifamily loans, reducing office exposure and enhancing resilience in a challenging commercial real estate environment.
- Despite a tight dividend coverage ratio, STWD's ability to recover costs from distressed loans and embedded gains in its real estate portfolio offer a buffer against losses.
- Trading at a slight discount to book value, STWD remains appealing for income-focused investors.
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MarsBars
Share price appreciation is a top focus for many investors, but focusing only on unrealized gains can result in anxiety over what the stock price is going to do day in and out. For non-dividend stocks, it can also result in
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of STWD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.
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