This REIT’s 10.1% Dividend Yield Really Is Safe

You have to work hard to find a good dividend yield nowadays. Most bonds pay next to nothing and anything with a decent payout tends to be risky. Lock in This 10.1% Dividend Yield...

But today’s stock should inspire confidence. Apollo Commercial Real Est. Finance Inc (NYSE: ARI) is a mortgage real estate investment trust (REIT) which lends money to new developments. And with a 10.1% yield, income hunters have taken note. At least as far as we care about the distribution, this payout looks reasonably safe. Apollo has paid dividends since 2010. Over that period, management has never cut the distribution. For the full year, the company expects to earn $261.0 million in net investment income (NII). Further, management has pledged to mail out $168.0 million in distributions. This comes out to a payout ratio of 64%.

Source: Income Investors

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