We discuss three essential criteria for steady passive income from investments. My investment strategy seeks regular and recurring income from lower-risk preferred securities. With fixed income, I am using the interest rate uncertainties to my advantage.
RLJ Lodging Trust's preferred shares are attractive as they cannot be easily called by the issuer. The preferred dividends are well-covered, with a payout ratio of just over 10%. The balance sheet of RLJ Lodging Trust is strong, with a low LTV ratio and sufficient common equity.