2024-03-11 07:00:00 ET
Summary
- Blackstone Mortgage Trust's 12.3% dividend yield is being questioned as its share price is near Covid-19 lows.
- Commercial mREIT loans face challenges due to weak office property fundamentals and higher-for-longer rates.
- Ladder Capital is suggested as a better alternative due to its lower exposure to weakening asset quality, strong inside ownership, and lower payout ratio.
In the stock market, we have a term for stocks that generate dividend yields that are too good to be true…
We call them sucker yields.
I included the definition in my new book:
Whenever I see a stock that yields 10% or higher, I become skeptical that the company can sustain its dividend....
Read the full article on Seeking Alpha
For further details see:
Is Blackstone Mortgage's 12.3% Dividend Yield A 'Sucker Yield'?