High-Yield Stocks for Dividend Investing: Starwood Property Trust

If you're looking for a high-yielding stock, commercial mortgage real estate investment trust Starwood Property Trust (NYSE: STWD) sports an attractive 8.6% yield. However, this specialized lender offers much more than just a big dividend. As the largest player in the space, Starwood Property is safer than most and has some of the biggest opportunities for growth -- in fact, the stock has a total return of 100% over the last three years.

Just like individuals need a mortgage to buy a home, businesses will use mortgages to acquire commercial property; this is where commercial mortgage REITs come in. These companies primarily make loans and own securities backed by commercial real estate assets. This could include a wide variety of real estate, but for Starwood Property it's mainly hotels and office space. This might sound similar to traditional banks, but there are a few key differences.

Source: Motley Fool

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