Ares Commercial Real Estate Corporation (ACRE)
15.3% Yield, Strong Quarter: Ares Commercial
Collect massive double-digit yields while the market turns a blind eye to the recent success of this company. My dream for our retirement is that dividends pay our way, and we never have to sell a single share. I'm happy to hold companies that are on the road to improvement because it allows me to collect high yields that others are ignoring.
Ares Commercial Real Estate: 14% Yield Might Be Sustainable
Ares Commercial Real Estate Corporation suffered a decline in distributable earnings in Q1 due to non-accrual issues in its loan portfolio. The trust increased its provision for credit losses by over $22 million, but the stock did not react significantly, suggesting it may have already bottomed out. With a 38% discount to book value and a realigned dividend payout, ACRE may still be attractive for passive income investors with a high risk tolerance.
