Starwood Property Trust is a consistent performer and dividend payer. Despite the lack of dividend raises, the stability offered can enable dividend growth through reinvestment. STWD operates as an mREIT with a market cap of $6B, offering a 10% dividend yield. STWD's portfolio includes diverse real estate investments, with a focus on commercial lending.
10%-Yielding Starwood Property Trust: The Gold Standard In CRE Investing
Undervalued dividend stocks focused on rewarding shareholders with capital returns are a good investment choice for a frothy market. Philip Morris International and Starwood Property Trust are highlighted as strong picks in this article for high cash flow and steady dividends. PM excels in innovative tobacco products, while STWD benefits from a diversified commercial mortgage REIT portfolio and higher interest rates.
Starwood Property Trust is a strong choice for dividend investors in the commercial real estate market. The REIT has a well-performing loan portfolio and high dividend yield. However, STWD took a valuation hit last week as another Starwood (non-traded) REIT announced redemption limitations. STWD has access to liquidity and could be a net buyer of commercial mortgage assets in the future.
Starwood Property Trust (NYSE: STWD) stock price has underperformed the broader market as concerns about its income and high interest rates continue. Its total return has dropped by 0.50% this year while the S&P 500 index has jumped by 11.30%.