In this video, we’re going to take a look at a high-yielding dividend stock at the request of a few people over on our Patreon. It’s a stock that’s had a really impressive track record since its IPO in 2009. It currently yields over nine and a half percent, and they’ve never had a dividend cut. For a company that’s been around this long and has consistently offered a yield this high, it's really worth taking a look at. But as I’ll explain later in the video, even though their track record has been great, more recently they’ve been going through a more challenging environment than they have in recent years.

The company we’re going to examine is Starwood Property Trust, ticker STWD. They’re an affiliate of the global private investment firm Starwood Capital Group, which is one of the largest investment firms in the world with approximately 120 billion dollars in assets under management. According to their website, amid the depths of the Great Recession, Starwood Capital recognized that traditional commercial lenders were withdrawing from the marketplace and that a significant need had emerged for alternative commercial mortgage financing. In response, the firm established Starwood Property Trust and took the company public in 2009.

Today, it is currently the second-largest mortgage REIT with a market cap of over six billion dollars. This company also has a slightly more unique investment portfolio. Although they’re technically classified as a mortgage REIT, they also hold a sizable portfolio of physical properties. Some equity REITs will hold a tiny amount of mortgage-related investments, but they almost never make up a sizable amount of their assets. In fact, with most of these companies, it’s not even worth going over their MBS holdings because they rarely account for more than a couple percentage points of their overall revenue. Starwood Property Trust is different in that over 12% of their assets are physical properties.

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