Insiders Love This 8% Yielder, Should You Consider It, too?

If you are a risk-averse investor, you’ve probably been given the advice to stay away from ultra-high-yielding stocks. And that’s advice particularly worth noting in today’s low-interest-rate environment. It doesn’t help that executives are almost always optimistic about their own businesses. But what if management is willing to use its own money to buy the company’s shares? Well, actions speak louder than words. If executives put their money where their mouths are, it’s certainly a more genuine vote of confidence. In other words, if a company has high insider ownership, it could be interpreted as a sign of strength.

One high-yield stock with high insider ownership is Ladder Capital Corp (NYSE:LADR), an internally managed real estate investment trust (REIT) with more than $6.0 billion dollars in assets. Headquartered in New York City, Ladder Capital is one of the leading commercial real estate capital providers in the country. Ladder Capital completed its initial public offering (IPO) in 2014. And to become a REIT, it started to pay regular cash dividends in 2015. Its first quarterly dividend of $0.25 per share was distributed to investors on April 15, 2015.

Source: Income Investors

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