Starwood Property Trust

STWD

Market cap $6.87B

In 2026, the seemingly forgotten Russell 2000 has emerged as the leading equity index, already up 5.6% compared with the S&P 500's 1.2% gain.

Dividend investing is increasingly vital amid higher rates and inflation, offering passive income and wealth compounding for retirement. Anchoring a portfolio with quality dividend ETFs like SCHD, FDVV, or CGDV can provide reliable income and potential outperformance. Combining high dividend growers (e.g., V, MA, WM) with stable high-yielders (e.g., VZ, O, ADC, STWD) balances growth and income.

Investors love dividend stocks, especially those with ultra-high yields, because they provide a substantial passive income stream and offer significant total return potential.

Ares Capital has paid a stable or growing dividend over the past 16 years. Energy Transfer aims to increase its dividend payment by 3% to 5% annually.

Starwood has maintained its lucrative dividend for more than a decade. Western Midstream aims to steadily increase its big-time distribution payment.

Ares Capital has paid a stable or growing dividend over the last 16 years. Energy Transfer plans to increase its distribution by 3% to 5% annually.

STWD and ABR represent opposite ends of the risk spectrum within the mREIT sector, despite similar high-yield appeal. I rate ABR as a "Sell" due to potential capital erosion risks and STWD as a "Hold" for income-focused investors looking for stability. The article reviews four main points that differentiate the companies' portfolios, which are the core reasons for the Sell rating on ABR.

Starwood Property Trust offers a stable, high-yield income stream, maintaining a >10% dividend yield and uninterrupted payouts for over a decade. STWD's diversified capital deployment, including $10.2B invested YTD and a major net lease acquisition, positions it for earnings growth as rates decline. Management anticipates 2026 will be strong for REITs, with lower rates likely to boost book value, transaction activity, and capital appreciation potential.

Avoid the "expensive is good" trap; commercial mREITs are deep bargains. The sector slump is reversing as loan originations are ramping up. Buy the bargain bin cash flow before Wall Street flips sentiment.

MIAMI BEACH, Fla. , Dec. 12, 2025 /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) ("the Company") today announced that the Company's Board of Directors has declared a dividend of $0.48 per share of common stock for the quarter ending December 31, 2025.