Starwood Property Trust: A Fat 8% Yield With Strong Coverage

Summary

• Starwood Property Trust has a strong track record of paying an uninterrupted dividend since inception.
• Recent share price weakness has driven the yield above 8%.
• It's recently seen record lending activity and has ample capacity to fund its pipeline.
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I recently stumbled across a video interview on YouTube, in which the person talked about the merits of investing in index funds. While I get the fact that the S&P 500 (SPY) has been a solid wealth compounder

Analyst’s Disclosure:I/we have a beneficial long position in the shares of STWD 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.