DRH - DiamondRock Hospitality: Balance Sheet Strength Indicates Stable Preferred Dividend Coverage

2024-06-18 10:30:21 ET

Summary

• DiamondRock Hospitality's preferred shares offer a 7.2% total return if called in 2025, with a 6.2% annualized return.
• The REIT's solid performance and balance sheet strength indicate a stable preferred dividend coverage.
• Consider investing in DiamondRock's preferred shares as a short-term option with potential for a 6.2% annualized yield.

Introduction

I like preferred shares as a subdivision of my income portfolio, and my main focus is obviously on the issuer’s ability to pay the preferred dividends while the balance sheet strength also plays an important role. The REIT’s management team also calls value creation its ‘magnetic north’ , and that definitely is an attitude I like to see....

For further details see: