Summary
Starwood Property Trust is a high-quality income vehicle.
The company has significant NII upside.
Shares are affordable.
An investment in STWD yields 8.8 percent.
Starwood Property Trust, Inc. (STWD) is a high-quality income vehicle for investors that desire high, recurring dividend income. The commercial property REIT and real estate finance company has a promising lending portfolio that is poised to deliver net interest income growth in a rising rate environment. Starwood Property Trust has very good dividend coverage stats, too, which suggests that the dividend is safe for the time being. Shares sell for a sensible core earnings-multiple, and an investment in Starwood Property Trust throws off a dividend yield of 8.8 percent.
Starwood Property Trust - Portfolio Overview
Starwood Property Trust primarily invests in first mortgage loans, which account for the lion's share of the REIT's investment portfolio. First mortgage loans are typically floating-rate, and preferred investments for income investors as long as the Fed pushes interest rates up.
Here's a portfolio snapshot.
