I'm a new investor looking for companies that are both growing and paying dividends. In my search, I found a company called Arbor, which is a REIT with a very juicy dividend yield (7.86%). Usually, dividend yields this high are when the company stock falls due to a bad future outlook, and it's expected that the company might have to cut its dividends soon, but that's not the case here — $ABR has been steadily growing for years.
I tried to read a bit more about this company, but I feel like I'm lacking the knowledge to understand what's it doing to be growing so much. It's a REIT that specializes in mortgages, but I thought this kind of stuff got less popular after 2008? Is it super risky?
It's not discussed very much on the internet, most articles I saw about it seem auto-generated from templates and mostly about the stock price (like this one).
Some more useful info I found:
- comparison of mREITs on seeking alpha which does not discuss Arbor much, but other mREIT stocks it mentions (like $STWD, $BXMT, $ACRE, and $LADR) while having similar yield, don't have similar stock price growth;
- this Q1 2021 call transcript that I read but couldn't understand much of the terms used there. GSE? AIR? build-to-rent?
- I also had a look at their 2020 yearly report, but I don't know how to read and understand that stuff properly... "2020 numbers are better than 2019 numbers"?
Does anyone have more knowledge in this area? What's your view on $ABR?
Submitted May 24, 2021 at 05:14AM by vlaaad https://ift.tt/3hJizbk
