Apollo Commercial's 11.8% Yield Is Too Dangerous

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On the Pulse
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Summary

  • Apollo Commercial’s stock has seen a meaningful recovery in recent weeks.
  • The trust covered its dividend with distributable earnings in 3Q-22.
  • High payout ratio doesn’t create confidence for passive income investors.
big arrow symbol Higher Interest Rates for Home Real Estate Ideas Savings on real estate of financial stability and growth and space for entering text on a yellow background, realistic 3D rendering.

Phiwath Jittamas

The stock price of Apollo Commercial Real Estate Finance Inc. (NYSE:ARI) has increased in recent weeks, but the commercial mortgage real estate investment currently does not provide a high level of dividend coverage.

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A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

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