STWD - Starwood Property Continues Churning Out Reliable Dividends Yielding 9.87%
2024-02-24 09:00:00 ET
Summary
- Starwood Property Trust delivered strong earnings, leading to a 16.40% gain in its stock price.
- While tech earnings and artificial intelligence are in the spotlight, income investing with assets like STWD can provide stable dividends.
- STWD's solid Q4 performance, well-diversified portfolio, and potential for a changing rate environment make it an attractive investment for income and capital appreciation.
Capital appreciation is becoming polarizing again as NVIDIA ( NVDA ) delivered strong earnings, which led to a $110.66 (16.40%) gain today. Tech earnings are grabbing the spotlight again, as an overwhelming amount of commentary is focused on artificial intelligence. Watching companies such as Meta Platforms ( META ) and NVDA being propelled into all-time highs while generating the amount of capital appreciation that exceeds the average return from the S&P 500 on an annual basis can become intoxicating. There is no single correct answer as to the best way to invest because everyone invests for different reasons. While we're living through an exciting time for big-tech, we also lived through 2022, where many of the market standouts were chopped in half. Income investing may be boring, and these assets are not immune to market fluctuations and macroeconomic events, but there are many that have continued to churn out hefty dividends quarter after quarter. Starwood Property Trust ( STWD ) has never reduced its dividend, and the next quarterly dividend will mark a decade of maintaining its $0.48 quarterly dividend . While growth investing grabs the headlines, there is a whole segment of investors who are focused on generating income from their capital. STWD is one of my favorite REITs, led by one of my favorite CEOs, Barry Sternlicht. No matter what macroeconomic headwinds have occurred, senior leadership has navigated the waters, and investors have been able to rely on its durable dividend. I am long STWD, and if you're looking for income, its track record speaks for itself. I think that STWD is positioned to capitalize on a changing rate environment, and investors could generate capital appreciation while collecting an annualized yield of 9.87%....
Starwood Property Continues Churning Out Reliable Dividends Yielding 9.87%