The market has been rife with opportunity to purchase high-quality stocks at discounted prices lately, which is pretty awesome for long-term, buy-and-hold investors like myself. The question always remains though, where should I invest my capital? With so many options and, in my case, such a small amount of capital available to invest every month, it can sometimes be tough to come to a decision.
This time around, I decided to add to my position in Starwood Property Trust, an REIT that I am quite enamored with. I initiated a position in the company back in June, at what I considered to be a good, albeit perhaps slightly overvalued price. Over the last 3 months, the price has fallen to what I would now consider to be a small discount relative to my estimated fair-value, so I pulled the trigger and bought some more. On 9/15/2015 I purchased 20 shares of Starwood Property Trust at $21.35/share, for a total investment of $427.00.
Not much has changed for the company since I made my first purchase. The financials remain largely the same, so there won’t be a need to re-write an analysis of the stock. Simply refer to the first post if you are interested in reading my analysis.
Since STWD sports a very fat yield of 9%, this small purchase still manages to boost my forward annual dividend income by $38.4, which is a nice chunk of change. My projected annual dividend income now sits just north of $865, leaving me with 15 months to achieve my goal of increasing it to $1200 by January 2017. Things are certainly moving along nicely.
How are your dividend goals coming along, my dear reader? What stocks are you looking at these days? Let me know in the comments.
Disclosure: long STWD