Investors love dividend stocks, especially those with ultra-high yields, because they offer a significant income stream and have substantial total return potential.
Within the mREIT industry, AGNC Investment Corp. AGNC and Arbor Realty Trust, Inc. ABR present compelling opportunities for income-focused investors, yet they differ significantly in risk profiles, dividend sustainability and growth trajectory.
ABR faces heavy short interest, a recent dividend cut, and share price declines, yet insider buying signals management's confidence in a turnaround. Despite operational challenges and legal risks, ABR's proactive loan management and reduced delinquencies showcase resilience and potential for recovery. Shares trade at an 18% discount to book value, with an 11%+ dividend yield providing downside protection and attractive income for investors.
Recently, Zacks.com users have been paying close attention to Arbor Realty Trust (ABR). This makes it worthwhile to examine what the stock has in store.
Despite recent dividend cuts and high short interest, I see Arbor Realty Trust as a contrarian buy with limited downside and strong recovery potential. Arbor's focus on multifamily and single-family rentals, plus innovative securitizations and prudent risk management, set it apart from riskier office-exposed REITs. While earnings and revenue have declined, adjusted profits cover the new dividend, and management is proactively optimizing the balance sheet for long-term value.
Arbor Realty Trust (ABR) reached $10.13 at the closing of the latest trading day, reflecting a -2.41% change compared to its last close.
Small-cap stocks typically do well when interest rates fall, which they may do later this year.
In the latest trading session, Arbor Realty Trust (ABR) closed at $10.42, marking a +1.56% move from the previous day.
I seek high-yield stocks with a true margin of safety, not just eye-catching yields that hide payout risks or value traps. Arbor Realty Trust offers a 12.5% yield and turnaround potential, with improving fundamentals and a 45% 12-month total return target. Blue Owl Capital combines rapid fee and dividend growth, strong earnings, and a 4.8% yield, with a 40% return outlook over 12 months.
The Fed remains boxed in, prioritizing 2% inflation over rising unemployment, making near-term rate cuts unlikely despite market expectations. Dividend investors should own stocks that perform well in both 'higher for longer' and rate-cut scenarios, focusing on resilient cash flow and growth. I offer 5 to help you navigate the current environment.
Arbor Realty Trust (ABR) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Investors love dividend stocks, especially the ultra-high-yield varieties, because they offer a significant income stream and have substantial total return potential.