STWD - Starwood Property Trust, Inc.
| Previous Close | 25.35 |
| Open | 25.36 |
| Bid | 25.35 x 1000 |
| Ask | 25.43 x 3000 |
| Day's Range | 25.25 - 25.42 |
| 52 Week Range | 20.83 - 25.56 |
| Volume | 962,117 |
| Avg. Volume | 1,292,188 |
| Market Cap | 7.161B |
| Beta (5Y Monthly) | 0.58 |
| PE Ratio (TTM) | 16.70 |
| EPS (TTM) | 1.52 |
| Earnings Date | Feb 25, 2020 - Mar 01, 2020 |
| Forward Dividend & Yield | 1.92 (7.57%) |
| Ex-Dividend Date | Dec 28, 2019 |
| 1y Target Est | 26.00 |
- TipRanks
3 “Strong Buy” Dividend Stocks Yielding Over 6%
Once again, we’re scanning the markets for high-value stocks. The key factors to look for are a solid upside potential combined with a high dividend yield. Today we’ll reverse course slightly, and point out three stocks that fit that profile – and show a lower-cost, more affordable point of entry for investors.Of the possible value factors for an investment, the dividend yield is probably the most important. It represents a quickly available, and recurring, cash return on a stock investment. With the Federal Reserve’s key rate set in the 1.5% to 1.75% range, and Treasury bond yields typically running well below 2%, dividends offer income-minded investors a route toward higher returns.While some big-name, high-profile stocks (Apple and Microsoft come to mind, along with Visa and Mastercard) offer token dividends yielding between 0.5% and 1.5%, and the average dividend yield among S&P-listed stocks is only 2%, there is no hard ceiling on dividend yields. We’ve used the TipRanks Stock Screener tool to search more than 6,500 stocks to find stocks with high yields exceeding 5%, along with a considerable upside potential and a Strong Buy consensus view from Wall Street’s analysts. The Screener returned 35 stocks to fit the profile – here are three of them.PacWest Bancorp (PACW)First on our list is a bank holding company, PacWest. These holding companies exist are formed to control one or more banks, and take advantage of Federal Reserve regulations to raise capital – through stock issues, borrowing, or acquisitions – more easily than independent banks. PacWest, based in Los Angeles and holding a market cap of $4.4 billion, is the parent company of Pacific Western Bank. The subsidiary bank has 79 branches in southern and central California, along with one branch in North Carolina, and controls $21 billion in assets.In the last four quarters, PacWest beat the earnings forecasts three times. The exception, however, was the most recent reported quarter – Q3 2019. In that report, the company showed an EPS of 92 cents, 2% below both the estimates and the Q3 2018 number. Revenues also missed expectations, with the $285.7 million reported 1.7% below the forecast, and almost 4% below the year-ago value. Despite the recent quarterly disappointment, PACW shares were up 22.5% in 2019.Going back as far as 2011, PACW has a history of gradually raising its dividend payment. The current quarterly payout is 60 cents per share; the company raised it from 50 cents in February 2018, marking the third increase in seven years, and a 233% increase from the 2011 value. PACW’s dividend is reliable, too, and paid out regularly each quarter. The annualized value, $2.40, makes the yield a healthy 6.54%. Finally, at a payout ratio of 65%, the dividend is easily sustainable. All of this, taken together, makes PACW a true dividend champion.Writing from Piper Sandler, Aaron Deer sees growth potential for both the bank and its holding company. He writes, “We expect solid yearend growth after a slower summer… We look for deposits growth to also hit a double-digit pace, with good inflows from both the community bank and venture division…. Operating expenses should remain well controlled but there could be a slight uptick from the new Colorado branch and bankers hired in that market… Some credit noise is possible but we think overall asset quality should remain healthy.”Deer gives PACW a Buy rating with a $44 price target. At current share price levels, this indicates a 20% upside potential. (To watch Deer’s track record, click here)Deer’s is not the only bullish report PACW has received recently. The stock’s Strong Buy consensus rating is based on three reviews, all of which agree that this stock is a Buying proposition. At $36.68, the current share price is a bargain price, and the average price target of $41.67 suggests an upside of nearly 14%. (See PacWest’s stock analysis at TipRanks)City Office REIT (CIO)Our next stock offers a slight variation on the value factors. With a lower share price and a higher dividend yield, CIO is both easier to enter and brings a better return. Neither of these factors is surprising, as City Office is a Real Estate Investment Trust (REIT), a company formed to purchase, own, and operate various types of properties – commercial, residential, industrial – or mortgage securities, and reap the profits. By law, REITs are required to return a high percentage of their profits to the shareholders, and usually use dividends to comply. As its name suggests, City Office focuses on metropolitan office spaces. The company operates mainly in the Southern and Western US.City Office derives its profits from 66 office buildings in Tampa, Orlando, Dallas, Denver, Phoenix, San Diego, and Portland. The properties have total of 5.9 million square feet in net rentable area, and are located in some of the country’s faster growing urban centers.Like many REITs, CIO reports earnings as funds from operations. In the most recent quarter reported, Q3 2019 the company gave an FFO of 29 cents per share, 6.4% below the forecast, but up 3.5% year-over-year. Revenues showed a stronger yoy gain, of 16%, and came in at $38.95 million – although that was still 1% below the estimates. CIO shares gained 41.6% in 2019, far outpacing the broader markets.CIO’s dividend, at 23.5 cents quarterly, may not sound like much, but it annualizes to 94 cents and offers a very high yield of 6.96%. The company has paid out this dividend consistently since 2015, although it has not raised the payment in that time. The payout ratio, which compares the dividend to the quarterly earnings, is 81%, a typical value for REITs.4-star analyst Mitchell Germain, from JMP Securities, is bullish on CIO, writing, “Our positive investment opinion is driven by market mix, with an emphasis on the Sunbelt, and a compelling value-add investment strategy, anchored on adding market scale, and finding smaller investments that have less institutional interest. Shares currently trade at 11.7x (2020e FFO/share), which compares to the office REIT sector average of 17.2x, keeping us positive on the investment…”Hanold set a $15 price target with his Buy rating, indicating confidence in an 11% upside for the stock. ( (To watch Germain’s track record, click here)Like PACW above, CIO has three recent Buy reviews backing up its unanimous Strong Buy consensus rating. The stock’s $14.83 average price target indicates an upside potential of 9.8% from the $13.50 current share price. (See City Office’s stock analysis at TipRanks)Starwood Property Trust (STWD)The last stock on today’s list is another REIT, this one focused on mortgage loans, mainly commercial mortgage-backed securities and other commercial real estate debt investment, but the company has also invested in similar residential mortgage loans and securities. With a market cap of $7.01 billion, and an investment portfolio exceeding $16 billion, Starwood is the largest commercial mortgage REIT in the US.Starwood’s most recent quarterly report – again, for Q3 of last year – showed slightly mixed results, but was generally positive. EPS was down 1.8% from the year before, but the 52 cents reported met expectations. Total quarterly revenue, at $327.19, missed the forecast by 1.5%, but was up 14.5% year-over-year. Shares slipped 1% after the report, but have since gained 5.7%. Overall, STWD shares showed a 36.7% appreciation in 2019.STWD’s dividend has been held steady at 48 cents since 2014. This quarterly payment translates to an annualized value of $1.92 and a strong yield of 7.72%. That yield is almost 4 times the S&P 500 average, and over 4 times the average return of Treasure bonds. Combined with the moderate share price of $24.88 and the strong appreciation in the past 12 months, this makes STWD an excellent investment value.This stock’s solid performance attracted attention from Donald Fandetti, 5-star analyst from Wells Fargo. Fandetti initiated coverage of STWD with a Buy rating, saying, “We view STWD as one of the best positioned commercial real estate finance companies that also has a history of successfully incubating new businesses… STWD’s div yield is 600+ bps over the 10-yr yield vs historical 250-350 pre-crisis periods.”Fandetti supported his view of STWD with a $26 price target, implying a modest 4.5% growth potential to the upside. (To watch Fandetti’s track record, click here)Starwood’s Strong Buy consensus rating is based on three Buys set in the past two months. As noted, shares sell for $24.88; the $26.50 average price target suggests an upside potential of 6.5% from that level. (See Starwood’s stock analysis at TipRanks) *
- American City Business Journals
185K+ sq. ft. of office space hits the market in Morrisville
A tech giant’s Triangle home in Morrisville is on the market with over 185,000 square feet of office space for sale in Perimeter Park and a longterm lease set to last over a decade.
- MoneyShow
Top Picks 2020- Starwood Property Trust, Inc. STWD
Starwood Property Trust (STWD) -- a top pick for conservative investors -- is a finance REIT whose primary business is the origination of commercial property mortgages, notes income expert Tim Plaehn, editor of The Dividend Hunter.
- American City Business Journals
Commercial, residential development in Durham goes for $110M+
A developer spent over $110 million on a large mixed-use complex next to Duke University, marking the company’s latest major acquisition in the Triangle.
- Insider Monkey
Hedge Funds Are Warming Up To Starwood Property Trust, Inc. (STWD)
Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 10 percentage points since the end of the third quarter of 2018 as investors first worried over the possible ramifications of rising interest rates and the escalation of the trade war with China. The hedge funds and institutional investors we track […]
- American City Business Journals
Publicly traded real estate giant takes another $40M bite of Central Ohio real estate
Three more Central Ohio buildings have sold in a year that has seen many commercial properties change hands throughout Central Ohio. Starwood Property Trust, which this fall bought downtown's 80 on the Commons tower for $72 million in a joint venture with Coastal Ridge Real Estate, spent $40 million on a trio of properties in a deal that closed Monday, according to the Franklin County Auditor's office. Greenwich, Connecticut-based Starwood (NYSE: STWD) bought the 269,360-square-foot warehouse at 5701 N. Meadows Dr. for $13.2 million; the 270,603-square-foot warehouse at 5900 N. Meadows Dr. for $14 million; and the 135,000-square-foot warehouse at 2240 Creekside Pkwy.
- Insider Monkey
Hedge Funds Love Owens Corning (OC) Way More Than These Stocks
Is Owens Corning (NYSE:OC) a good place to invest some of your money right now? We can gain invaluable insight to help us answer that question by studying the investment trends of top investors, who employ world-class Ivy League graduates, who are given immense resources and industry contacts to put their financial expertise to work. […]
- Thomson Reuters StreetEvents
Edited Transcript of STWD earnings conference call or presentation 8-Nov-19 3:00pm GMT
Q3 2019 Starwood Property Trust Inc Earnings Call
- Zacks
Starwood Property Trust (STWD) Q3 Earnings Match Estimates
Starwood Property Trust (STWD) delivered earnings and revenue surprises of 0.00% and -1.47%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
- PR Newswire
Starwood Property Trust Reports Results for the Quarter Ended September 30, 2019
-- Quarterly GAAP Earnings of $0.49 and Core Earnings of $0.52 per Diluted Common Share -- -- Deploys $2.5 Billion of Capital, Including $1.2 Billion in Commercial Lending -- -- Executes $1.1 Billion CRE ...
- Zacks
What to Expect From Starwood Property's (STWD) Q3 Earnings?
A low interest-rate environment and continued positive economic growth are expected to have supported Starwood Property's (STWD) portfolio growth in Q3.
- Simply Wall St.
Are Dividend Investors Making A Mistake With Starwood Property Trust, Inc. (NYSE:STWD)?
Is Starwood Property Trust, Inc. (NYSE:STWD) a good dividend stock? How can we tell? Dividend paying companies with...
- Zacks
Earnings Preview: Starwood Property Trust (STWD) Q3 Earnings Expected to Decline
Starwood Property Trust (STWD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
- American City Business Journals
Here's what a recent string of office deals says about the appeal of Columbus real estate
"A lot of buyers are new to Columbus," one broker said. "And we're fielding a lot of phone calls from people across the U.S. who'd otherwise be looking in the big first-tier markets."
- Zacks
5 Stocks With High Net Income Ratio to Grab Now
Investors always have a keen eye for companies having a high level of profitability regardless of the market condition.
- Zacks
Is STARWOOD PROPERTY TRUST, INC. (STWD) Outperforming Other Finance Stocks This Year?
Is (STWD) Outperforming Other Finance Stocks This Year?
- Insider Monkey
Do Hedge Funds Love Starwood Property Trust, Inc. (STWD)?
There are several ways to beat the market, and investing in small cap stocks has historically been one of them. We like to improve the odds of beating the market further by examining what famous hedge fund operators such as Jeff Ubben, George Soros and Carl Icahn think. Those hedge fund operators make billions of […]
- American City Business Journals
Two buildings, 180,000 square feet of space, hit the market in Durham
A portfolio of flex and office space has gone on the market in Durham, with marketing materials listing over 177,000 square feet of space. Transwestern Commercial Services announced Thursday that it is selling TBC Place I and II, two single-story buildings owned by Miami-based Starwood Property Trust and situated on nearly 19 acres at 4021 and 4025 Stirrup Creek Drive. “There has been an uptick in investment sales activity in the Triangle region’s Interstate 40/Raleigh Triangle Park submarket, as shown by recent office and industrial asset transactions,” stated Transwestern Managing Director John Bell.
- Zacks
3 REITs for Income Investors to Buy in the Fourth Quarter of 2019
Let's dive into 3 highly-ranked REITs we found using our Zacks Stock Screener that income investors should consider buying in the fourth quarter of 2019...
- Zacks
Has STARWOOD PROPERTY TRUST, INC. (STWD) Outpaced Other Finance Stocks This Year?
Is (STWD) Outperforming Other Finance Stocks This Year?
- PR Newswire
Starwood Property Trust Announces Date for Third Quarter 2019 Earnings Release and Conference Call
GREENWICH, Conn. , Oct. 10, 2019 /PRNewswire/ -- Starwood Property Trust (NYSE: STWD) today announced that the Company will release its third quarter 2019 financial results on Friday, November 8, 2019 ...
- Moody's
Starwood Property Trust, Inc. -- Moody's announces completion of a periodic review of ratings of Starwood Property Trust, Inc.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Starwood Property Trust, Inc. New York, September 23, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Starwood Property Trust, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
- Simply Wall St.
We Wouldn't Be Too Quick To Buy Starwood Property Trust, Inc. (NYSE:STWD) Before It Goes Ex-Dividend
Readers hoping to buy Starwood Property Trust, Inc. (NYSE:STWD) for its dividend will need to make their move shortly...
- GuruFocus.com
Starwood Property Trust Inc (STWD) COO and General Counsel Andrew Jay Sossen Sold $712,500 of Shares
COO and General Counsel of Starwood Property Trust Inc (30-Year Financial, Insider Trades) Andrew Jay Sossen (insider trades) sold 30,000 shares of STWD on 09/06/2019 at an average price of $23.75 a share. Continue reading...
- IPO-Edge.com
Disenchanted with Unicorn IPOs? Return to Reality with this REIT Backed by Steady Profits
Trinity Merger Corp. to Combine with Broadmark to Create Listed Mortgage REIT By John Jannarone From Travel-as-a-Service to Space-as-as-Service, the IPO market has been dominated by big promises and little profits in 2019. For those seeking a new listing with a track record of steady returns, there is an appealing choice on the menu. Meet […]
