Lock In The 7.5% Dividend Of The Preferred Stock Of RLJ Lodging Trust Before It Falls Further
Summary
- RLJ Lodging Trust's preferred stock offers a 7.5% yield, down from 8.1%, but remains attractive thanks to the safety of its dividend and potential Fed rate cuts.
- The REIT owns 96 premium-branded hotels, has recovered from the pandemic, and maintains a healthy balance sheet, ensuring the preferred dividend's safety.
- The preferred dividend is well-covered with a 9.3 coverage ratio, and the REIT is unlikely to eliminate its common dividend, even in a recession.
- With the Fed likely to reduce interest rates, locking in the 7.5% yield of RLJ Lodging Trust's preferred stock is a prudent move for income-oriented investors.
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More than a year ago, I recommended buying the preferred stock of RLJ Lodging Trust (NYSE:RLJ.PR.A), which was offering an 8.1% yield back then. I recommended buying this stock for its exceptionally attractive yield and the safety of its
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