2024-07-11 07:05:13 ET
Summary
- Starwood Property Trust is a consistent performer and dividend payer. Despite the lack of dividend raises, the stability offered can enable dividend growth through reinvestment.
- STWD operates as an mREIT with a market cap of $6B, offering a 10% dividend yield.
- STWD's portfolio includes diverse real estate investments, with a focus on commercial lending.
- Future interest rate cuts can provide relief to the current portfolio of borrowers, while simultaneously creating a more attractive environment for portfolio growth.
Overview
I previously covered Starwood Property Trust ( STWD ) back in November 2023 and since my initial coverage, STWD has provided a total return of 10%. Despite this undercutting the performance of the general S&P, I am quite happy with that performance when you consider the fact that real estate was one of the worst performing asset classes over the last three years because of interest rate fluctuations. Even though the total return of STWD is down over 3%, it outperforms the general real estate sector ( XLRE )....
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For further details see:
Starwood Property Trust Will Likely Get Relief From Future Interest Rate Cuts