STWD Stock Recent News

Starwood Property reported better-than-expected Q4 earnings last week, supporting a buy recommendation. The REIT's C&R lending segment is performing well and continues to contribute the majority of distributable earnings. Starwood Property generated 1.21x dividend coverage in Q4 and 1.07x in FY 2023.

Starwood Property Trust (STWD) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Investing in the S&P 500 for retirement may be risky due to its high PE ratio and low yield. Starwood Property Trust offers a high income opportunity with its 9.7% yield and diversified portfolio. STWD has a strong history of delivering shareholder returns and is well-positioned for growth in the infrastructure lending segment.

Starwood Property Trust's dividend safety margin improved in Q4 due to stronger results in the Infrastructure Lending and Investing/Servicing segments. The trust easily covered its dividend payout with distributable earnings in Q4, reducing dividend risks. With net investment fundings increasing and short-term interest rates expected to fall, Starwood Property Trust is a solid passive income stock for 2024.

Starwood Property Trust delivered strong earnings, leading to a 16.40% gain in its stock price. While tech earnings and artificial intelligence are in the spotlight, income investing with assets like STWD can provide stable dividends. STWD's solid Q4 performance, well-diversified portfolio, and potential for a changing rate environment make it an attractive investment for income and capital appreciation.

Starwood Property Trust, Inc. (STWD) Q4 2023 Earnings Call Transcript

Starwood Property Trust (STWD) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.50 per share a year ago.

In trading on Thursday, shares of Starwood Property Trust were yielding above the 9% mark based on its quarterly dividend (annualized to $1.92), with the stock changing hands as low as $21.18 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return.

In this article, I discuss how Starwood Property Trust is the perfect stock to help build your dividend snowball at a much faster pace. Starwood is one of the better managed mortgage REITs which is why the stock has delivered consistent earnings and a steady dividend. Due to the 10% dividend yield, the stock is now trading at an elevated valuation, allowing minimal upside to its price target.

Starwood Property has rebounded off its 2023 lows and is up 8.91% YTD, outperforming the VNQ index. STWD delivered strong Q3 results, with $0.15 of GAAP earnings and $0.49 of distributable earnings per share. STWD is well-positioned to capitalize on the current lending environment and has a high-yielding dividend of 9.52%.