Ares Commercial: I Reach For Higher Yield When It Reaches For Me

Gen Alpha
Investing Group

Summary

  • Ares Commercial Real Estate is a well-run commercial mortgage REIT that's seeing robust deal volume.
  • It has an attractive pipeline and has plenty of funding capacity.
  • Recent price weakness has pushed ACRE's dividend yield above 9%, and the dividend is well covered by distributable earnings.
  • Looking for a portfolio of ideas like this one? Members of Hoya Capital Income Builder get exclusive access to our model portfolio. Learn More »

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Income investors have inherent advantages when it comes to hunting for value. That’s because in addition to getting bargains with the potential for capital appreciation, the lower price also begets a higher dividend yield, resulting in high income.

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This article was written by

Gen Alpha
21.46K Followers

I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

I provide high-yield, dividend growth investment ideas in the investing group

iREIT®+HOYA Capital

. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.

Learn more

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ACRE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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