STWD - Starwood Property: I Have Doubled My Shares Through Dividend Income In 7.5 Years

2024-05-13 09:00:00 ET

Summary

• Despite a decrease in share price, the number of shares and dividend income from Starwood Property Trust have doubled, resulting in a 78.13% total return on the initial investment.
• STWD has been able to consistently deliver a $1.92 annualized dividend per share, making it a reliable investment even in challenging economic conditions.
• Reinvesting dividends has significantly impacted the original investment, with the share count and annualized dividend income increasing by 99.62%.

Starwood Property Trust ( STWD ) was the first REIT I invested in at the end of 2016. After reinvesting 30 individual dividends that STWD has paid, my share count and dividend income have doubled. Despite the shares of STWD being down by 10.77% ($2.44) from my original purchase price, the number of shares I have in this account and the forward annualized dividend income have increased by 99.62%. This has caused my initial investment to grow by 78.13%, which is a 10.2% annualized return despite the fact that the actual shares were down by -10.77%. Despite the pandemic and a rising rate environment, STWD has been able to deliver a $1.92 annualized dividend per share, no matter what operating environment they have faced. I think STWD is well positioned for the future, and I am excited to see what it will do when the Fed switches its policy on interest rates. I am still bullish on STWD, and I look forward to reinvesting all the future dividends and organically growing this position for years to come....

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