May 12

STWD – Adding More Starwood Shares

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Earlier this week I purchased 100 shares Starwood Property Trust Inc (NYSE: STWD) stock at $24.04 per share, totaling $2,413.97. This takes my total shares of STWD to 304 and at current valuations my Starwood annual dividend income is $583. Starwood is the latest addition to my Investment Hunting portfolio. This month I have been buying up REITs because they are trading a low valuations. I also added more shares of Omega Health Investors (NYSE: OHI) and initiated a new position with Realty Income Corp (NYSE: O).

An Overview of STWD

Starwood Property Trust, Inc. is a holding company. Starwood is focused on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments in the United States and Europe.

STWD Dividends And Ratios

  • Annual Dividend Yield of 8.00%
  • 3-Year Compound Annual Growth Rate of 3.3%
  • 5-Year Dividend Per Share Average of $1.71
  • 5-Year Dividend Yield Average of 6.05%

Starwood Valuation

  • P/FFO – 11.5

StarwoodAnnual Growth

  • 1-year Sales Growth of 11.34%
  • 1-year EPS Growth of 2.62
  • 1-year EPS Growth Forecast of -1.38%
  • 3-year EPS Growth Forecast of 7.50%

Starwood Profitability

  • Gross Profit Margin, 58.92%
  • Operating Profit Margin, 30.63%

Starwood Conclusion

Starwood is a good REIT to hold in a portfolio. This is especially true at a time when interest rates are speculated to rise. The majority of Starwood loans are based on the LIBOR, which means as rates rise so do the interest rates on STWD loans. STWD is currently undervalued due to interest rate concerns. This concern has created a REIT buyers market. My latest addition of 100 shares will allow me to DRIP six new shares per quarter at Starwood’s current stock price. I am happy to buy more shares and add 24 shares a year through DRIP Investing. You can learn more about my initial purchase of 200 Starwood shares on here.

What is your opinion of Starwood Property Trust? Do you think is it wise to invest in REITs?

Full Disclosure: Long STWD


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