Why This 6.3%-Yielding Top-Shelf Lodging REIT Is A Buy

This company remains a best-in-class hotel REIT. It has a high-quality property portfolio and sector-leading EBITDA margins, making it a top-rated income vehicle in the lodging REIT sector. The REIT covers its dividend payout with adjusted funds from operations, but the payout ratio is volatile. Shares sell for a competitive run-rate AFFO-multiple. The risk-reward is still attractive. An investment in the stock yields 6.3 percent.

Chatham Lodging Trust (CLDT) is a promising U.S. lodging REIT for investors that seek high, recurring dividend income. Chatham Lodging Trust has a high-quality real estate portfolio and industry-leading EBITDA margins. The lodging REIT further covers its dividend with adjusted funds from operations and pays its distribution on a monthly schedule. Shares are attractively valued, and an investment in CLDT throws off a 6.3 percent dividend.

Source: Seeking Alpha

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