Apollo Commercial Real Estate Finance has been named one of the top ten real estate investment trusts (REIT) according to Dividend Channel, which released its latest release ”DividendRank” Report. The report found that among REITs, ARI shares had both attractive valuation metrics and strong profitability metrics. For example, ARI’s current stock price of $10.68 represents a price-to-book ratio of 0.6 and an annual dividend yield of 13.11% – in comparison, this is what the average stock in Dividend Channel 4’s coverage universe achieves .2% and trades at a price-to-book ratio of 2.4. The report also noted Apollo Commercial Real Estate Finance Inc.’s strong quarterly dividend history and favorable long-term multi-year growth rates on key fundamental data points.
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The report states: ”Dividend investors who approach investing from a value perspective are generally most interested in researching the strongest, most profitable companies that also happen to trade at an attractive valuation. That’s what we aim to find out using our proprietary DividendRank formula, which ranks the coverage universe based on our various profitability and valuation criteria to create a list of the “most interesting” stocks to serve as a source of ideas for investors deserving further research .”
REITs hold a special place in the hearts of dividend investors because they are required to pay out at least 90% of their taxable income as dividends to shareholders each year. While this can result in a high dividend yield, it also introduces some volatility and uncertainty in the level of payments from year to year – high dividend payouts are common when a REIT generates large profits, compared to smaller payouts or even none at times Dividends from losses.
The current annual dividend paid by Apollo Commercial Real Estate Finance is $1.4/share and is currently paid in quarterly installments. The last dividend has an upcoming expiration date of September 28, 2023. Below is a chart of the long-term dividend history for ARI, which was highlighted as critically important in the report. In fact, examining a company’s past dividend history can be a good help in assessing whether the most recent dividend is likely to continue.
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Source : www.forbes.com