RCC - Arbor Realty: 13.3% 'Sucker Yield' 3 Better Big-Dividend Strategies

2024-03-18 09:17:07 ET

Summary

• If you like high income, Arbor Realty's big dividend is hard to ignore, especially considering its long track record of growing success (we share comparative data for 35+ peers).
• However, this mortgage REIT checks all 10 boxes for a "sucker yield," and investors should proceed with extreme caution.
• After reviewing Arbor Realty in detail (through the lens of the 10 boxes) we conclude with three better big-dividend strategies that income investors may want to consider.

If you are an income-focused investor, Arbor Realty Trust ( ABR ) may be extremely tempting because of its massive dividend yield (currently 13.3%) and long-term track record of success. However, this mortgage REIT checks all the boxes for a “sucker yield,” and there are far better investment opportunities if you like to generate high income. In this report, after first sharing comparative data on 35+ mortgage REIT peers, we then share 10 reasons why Arbor Realty Trust may be a "sucker yield" (i.e. a dividend that is “too good to be true”), and then finally conclude with three superior big-dividend strategies for you to consider.

About:

Arbor Realty Trust is a mortgage REIT. Specifically, it is a real estate investment trust ((REIT)) and direct lender providing loan origination and servicing for multifamily, single-family rental portfolios and other diverse commercial real estate assets....

For further details see: