STWD - Starwood Property Trust: With A 10% Dividend Yield A Rock In A Rough Sea
2024-04-03 22:32:18 ET
Summary
- I am closely monitoring Starwood Property Trust due to its role as a major commercial real estate mortgage company and a source of income for investors.
- Mounting headwinds, including higher interest rates and inflation, are causing concerns for the commercial real estate industry.
- STWD has a strong balance sheet and prudent financial management, which provides stability and income potential for investors.
Introduction
As most readers know, I never stop talking about the "big picture," as I believe it is crucial to be aware of major economic developments and what this may mean for the future of the market.
Some of my big-picture themes are:
- A long-term energy/agriculture bull case.
- Higher-for-longer interest rates and inflation.
- A rotation from growth to value stocks.
- Weakening commercial real estate ("CRE") fundamentals.