STWD Stock Recent News

I discuss the importance of selecting sustainable dividend stocks such as Starwood Property Trust and warn investors about chasing after high yields that may not be sustainable. Starwood Property Trust is a safe investment option for dividend investors due to its consistency and efficiency. Starwood Property Trust is the largest commercial mortgage REIT in the United States and is known for delivering consistent returns over time.

Starwood Property Trust (STWD) remains an attractive REIT with a top and bottom line beat on Q2 earnings. STWD has successfully navigated a tough environment for REITs, thanks to superior management and understanding of the economy. Despite a slight decline in share value, STWD's book value remains strong, and the company is well-positioned for future strategic investments.

Starwood Property Trust is a high-yielding opportunity that's currently trading at a discount to book value. It has a diversified portfolio, with 29% of undepreciated book value stemming from reliable income-generating properties. The company has a strong balance sheet for a commercial mortgage REIT, and could benefit from a pullback in regional banking activity.

Starwood Property Trust (STWD) came out with quarterly earnings of $0.49 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.51 per share a year ago.

I decided to sell my investment in Starwood Property Trust due to a strong stock price performance and an overbought chart picture. Despite the commercial real estate investment trust's strong dividend and diversified portfolio, STWD stock has become expensive, and the office market is facing risks. Passive income investors may want to take profits now and wait for a potential pullback to restart a position at a more compelling valuation.

GREENWICH, Conn. , July 6, 2023 /PRNewswire/ -- Starwood Property Trust (NYSE: STWD) today announced that the Company will release its second quarter 2023 financial results on Thursday, August 3, 2023 before the opening of trading on the New York Stock Exchange.

Starwood Property Trust Inc. STWD, +1.30% stock is down 2.5% in premarket trades on Thursday after the real estate investment firm said it's offering $350 million in convertible senior notes due 2027 with underwriters Goldman Sachs, J.P. Morgan Securities, Wells Fargo, Barclays, BofA Securities and Citigroup Global Markets.

Starwood Property Trust remains an attractive high-yielding income stock due to its diversified portfolio and management's efforts to de-risk towards lesser risk segments. STWD's commercial loans have a weighted average loan-to-value ratio of 61%, providing a strong position in the event of a default. The stock trades at a 10% discount to its un-depreciated book value, offering the potential for a 15% total return over the next 12 months.

Starwood Property stock has recovered most of its March losses, with its valuation normalizing further as buyers capitalized on its attractive forward dividend yields in May. Management kept its income investors on board by demonstrating confidence and resolve to retain its dividend. As such, dip buyers likely garnered the confidence to buy more. STWD's forward dividend yield of 9.9% is still not aggressive and has a reasonable buffer against the 10Y Treasury yield, which last printed at 3.77%.

I have owned Starwood Property Trust, Inc. in my SWAN income portfolio for years. CEO Barry Sternlicht is the best of the best. Barry is extremely well-versed in real estate. Starwood pays a relatively safe and secure dividend yielding 11.25%. The mREIT has $8 billion in liquidity, and Sternlicht is dedicated to paying the dividend.