Dear Reader,
The official numbers finally show what we’ve all felt in our wallets for months if not years:
Inflation is here.
No wonder – 40% of U.S. dollars in circulation were printed in the last 12 months.
Whether that inflation is here to stay or not, we as investors have to adapt.
That’s why below, I’m releasing an excerpt from The Dividend Hunter, my paid dividend stock newsletter.
It’s a quick rundown on one of my favorite income-producing stocks. As a mortgage REIT, this company makes the most money when current, short-term interest rates are low…
But longer-term rates are higher because inflation is looming.
That’s exactly where we are now, and it’s why you need to consider this stock today.
And remember – The Dividend Hunter members get scoops on stocks like this one and many more every week. You can join today and get access to 33 more low-risk, high-yield stocks. Just click here.
There’s no better way to prepare yourself for what’s coming in the markets.
Now, to our inflation-proof REIT stock…
Arbor Realty Trust Inc. (ABR) is a small cap finance REIT.
The company is a commercial mortgage lender, with a focus on making multi-family residential property senior loans.
It’s a leader in its commercial mortgage niche and unlike a lot of finance REITs, the company is on a nice growth trajectory. That growth includes a growing dividend.
Arbor Realty divides company operations into two sectors, structured business and agency business.
For the balance sheet loans and structured investments, the company primarily originates or invests in multi-family secured loans. 90% of the investment portfolio is in bridge loans, with 80% of the bridge loans to multi-family properties. It makes money off the spread between the interest they pay when borrowing for those investments and the interest they’re paid for lending to other borrowers.
Arbor Realty is a growth focused business with a high current yield and growing dividends, which gets an investment off to a great start. Arbor just raised its annual dividend to $1.40 per share and its recent closing price of $19.20 gives it a yield of 7.36% with a market cap of $3.0 billion.
That’s the company’s fifth consecutive quarterly increase and the 21st time it has increased dividends in the last 10 years.
Meanwhile, ABR’s net earnings clocked in at $2.55 per share, up 64% year over year as the shares have climbed by 61% in the past 12 months.
The stock is showing positive momentum and consensus estimates for ABR’s earnings for 2022 are showing a 14.4% move higher.
Especially noteworthy is ABR’s track record of nine consecutive years of consistent dividend growth, including two consecutive increases during the pandemic of 2020. That consistently growing dividend is a big reason Arbor Realty Trust’s total shareholder return for the last five years was a whopping 300%.
I look forward to continued regular dividend and share increases from this stock.