​Starwood Property: “No Drama” Yield

MoneyShow |

Image via Travelarz/Wikimedia

I think of Starwood Property Trust (STWD) as one of the most “no drama” high-yield stocks on our recommendations list, suggests income expert Tim Plaehn, editor of The Dividend Hunter.

With STWD, you have a very well and conservatively managed company. In my opinion, the market does not give enough credit to the conservative nature of Starwood’s portfolio and balance sheet, but that does let us earn an 8.5% yield on the shares.



The business is like a cash generating machine quarter after quarter. As one of the largest finance REITs, the STWD share price is most affected by investor sentiment towards the finance REIT sector and the resulting buying and selling of the ETFs which cover the sector.

Starwood Property is a stock you pick up for the 8.5% dividend income stream and do not expect much from the share price movement.

We're looking for the cash income from this anyhow, so the rock-solid 8% dividend and stable share price is a huge reason why I love this stock.

It is good to buy when you have some extra cash that you would like to put to work. Buy STWD up to $24.00 per share to lock in a long-term 8% plus yield.

Tim Plaehn is the lead investment research analyst for income and dividend investing at Investors Alley and editor of The Dividend Hunter,

Subscribe to Tim Plaehn's The Dividend Hunter here…

About MoneyShow.com: Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
STWD STARWOOD PROPERTY TRUST INC. Starwood Property Trust Inc. 21.81 -0.01 -0.05 1,322,572 Trade

Comments

Emerging Growth

Singlepoint Inc

SinglePoint Inc is a mobile technology company engaged in mobile payments, mobile giving, and mobile bidding. It operates mobile commerce and communications platform to accept mobile credit card payments.

Private Markets

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…

Quants Inc

Quants, Inc, a California Corporation, develops, markets and operates financial technology platforms and alternative investment products offering sophisticated risk management since 2010. The Company has primarily sharpened its focus with…