Looking For Income? 10%-Yielding Starwood Property Trust Has You Covered

Elevated yields often signal high risk, but Starwood Property Trust offers a strong 10% yield backed by resilient financials and conservative risk management.
Despite headwinds in commercial real estate, STWD remains stable, with no dividend cuts in recent years and a strategic shift towards multifamily lending.
STWD's valuation is favorable, trading close to its book value, but limited growth potential and rate environment dependence make it a Hold for capital gains seekers.
For income-focused investors, STWD can be a valuable, diversified portfolio component, but avoid over-reliance; a balanced approach is essential.

Art Wager/E+ via Getty Images

Introduction

Elevated yields make me nervous. That's something I have mentioned in countless articles. The higher the yield, the higher the risk we're dealing with a "sucker yield."

I highlighted this in a recent

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