I have doubled down on Apollo Commercial Real Estate Finance, Inc. (ARI) last week in order to capitalize on the stock market stampede and lock in an appealing cost basis. Apollo Commercial Real Estate Finance is a promising high-yield income play due to its large exposure to a floating-rate investment portfolio. Interest rate and operating earnings upside during the current rate hiking cycle could even yield a dividend raise. An investment in ARI yields 10.4 percent.
With investors getting a taste of surging volatility last week, I used the opportunity to add to