Dividend Stocks: REIT Offers Jaw-Dropping 11.2% Yield, Raised Dividend Nearly Every Quarter

Top real estate and dividend stock Arbor Realty (ABR) is worth considering for investors seeking a supercharged yield.

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Headquartered in Uniondale, N.Y., Arbor Realty operates as a real estate investment trust (REIT) offering mortgages, mezzanine loans, bridge loans and other real estate lending products.

IBD’s Finance and Mortgage REIT industry group has struggled, ranked 132nd out of 197 industries. Higher interest rates and the potential of a recession have dampened investor sentiment.

Despite this, Arbor Realty has been outperforming, ranked second in the group thanks to strong earnings results. The company was just added to the small-cap S&P 600 index, too.

Arbor Realty Increases Dividend Yet Again

Outperformance has been the cherry on top for investors who have already been cashing in on a jaw-dropping 11.2% annualized dividend yield.

During first-quarter results in early May, Arbor Realty Trust announced yet another dividend increase, bringing the dividend to 42 cents per quarter.

The company has shockingly increased its dividend in 11 out of the last 13 quarters, with dividend growth of 11% in the last year alone.

A slowdown in the housing market and signs of a cracking economy are definitely points of caution for investors in Arbor Realty.

Nevertheless, some economic weakness is already baked into the stock with the expectation that borrowers will face increasing pressure with payments. There’s also expectations of a higher level of defaults.

Dividend Stock In Bullish Pattern

Arbor Realty has been preparing for this by drastically increasing credit loss provisions and having a sizable $785 million in cash and liquid assets on hand.

This gloomy picture also provides hope for positive surprises. As the economy and housing market have shown some unexpected resilience, shareholders have been rewarded with Arbor Realty’s shares over 40% higher in the past two months.

The divided stock is trading above both its 50-day and 200-day moving averages. It is forming a cup-with-handle base with a 14.38 buy point, per MarketSmith pattern recognition. Shares have been trying to breakout past that level.

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