Starwood Property Trust (STWD) is an excellent choice for income investors in my opinion. The commercial mortgage REIT has a demonstrated record of strong core earnings, excess dividend coverage, and, yes, even potential to grow its dividend in a higher rate environment. The potential for dividend growth is the single biggest reason why I added to my existing long position in Starwood Property Trust last week.
As dividend investors we want to make sure that the investments we make continue to pay us a regular, ideally growing dividend over time. I believe Starwood Property Trust is an exceptional income vehicle with high core earnings quality. Three reasons, in my opinion, stand out why income investors want to place Starwood Property Trust at the top of their shopping lists.
