3 Reasons To Consider Arbor Realty Trust's 9% Dividend

Investors should always view companies that offer a high dividend yield with a skeptical eye. Is the yield a product of a falling share price? Is the company distributing more than it can sustain? Yet for some companies, sometimes it is simply an overreaction by misplaced association that can inflate the yield.
One such financing company that appears to be discounted in light of the poor association with other mortgage and finance REITs that appear to be more leveraged is Arbor Realty Trust, Inc (ABR). Arbor Realty Trust is a real estate investment trust specializing in structured finance investments. The company's loan portfolio is diversified between multi-family and commercial real estate bridge and mezzanine loans. The company also maintains preferred equity investments, mortgage-related securities, and other real estate-related assets.
Investors continue to remain concerned over a potential asset bubble and the high leverage of finance REITs. As the Federal Reserve contemplates raising interest rates, anxiety continues to grow in the minds of investors that the market may soon be reaching a top. With memories of the financial crisis still fresh in their minds, cautious investors remain concerned that rapid interest rate hikes can pop the value of inflated assets and that this may unintentionally catch unprepared companies by surprise if the economy grinds back down into a recession.
Yet unlike some of its industry peers, Arbor Realty maintains a much more... Read more