12 Ultra-High Dividend Stocks to Buy for Income Investors

9. Starwood Property Trust, Inc. (NYSE:STWD)

Dividend Yield as of June 21: 11.50%

On June 15, Keefe Bruyette lowered its price recommendation on Starwood Property Trust, Inc. (NYSE:STWD) to $19 from $19.50. It reiterated an Outperform rating on the shares. Analyst Jade Rahmani said he has become “slightly” more cautious about the outlook for commercial real estate. In a research note, he told investors that the sector continues to face challenges, leading to a more measured view of future performance.

Earlier, on June 2, UBS resumed coverage of STWD with a Buy rating. It also set a $20 price target on the stock. The firm noted that the recovery across the commercial mortgage real estate investment trust sector has been “notably bifurcated.” According to UBS, companies that have returned to meaningful loan origination activity are trading at an average of 0.85 times book value. In contrast, firms still dealing with legacy credit issues are trading closer to 0.20 times book value. UBS believes Starwood Property deserves a premium valuation because of its strong balance sheet, diversified business model, and the scale of its platform.

Starwood Property Trust, Inc. (NYSE:STWD) is a real estate investment trust. The company operates through several segments, including Commercial and Residential Lending, Infrastructure Lending, Property, and Investing and Servicing.