Since interest rates are hardly going to go up at the Federal Reserves' policy meeting at the end of September in light of weaker-than-expected August employment data, yield-starved income investors relying on steady dividend income have no other choice, really, but to turn to the high-yield sector. This company remains a compelling income alternative for REIT investors. It covers its dividend with core earnings and is selling for less than eleven times run-rate Q2-16 core earnings. An investment in it yields 8.09 percent.
One commercial real estate finance company that is worth a serious look in my opinion is Ladder Capital Corp. (NYSE:LADR), which I have last covered two months ago. If you are not familiar with Ladder Capital, reading up on the real estate finance REIT now would be a good idea. In a nutshell, four reasons stood out why I thought Ladder Capital would be a good investment idea: 1. The company had consistently positive core earnings since inception. 2. The REIT's equity was selling for less than accounting book value at the time. 3. Ladder Capital covered its dividend with core earnings. 4. Ladder Capital's shares were throwing off a dividend exceeding 8 percent.
Source: Seeking Alpha
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This 8% Yielder Has Room To Grow
Posted by D4L | Monday, September 26, 2016 | ArticleLinks | 0 comments »________________________________________________________________
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