Published Fri, 12 Apr 2019 17:53:22 -0400 on Seeking Alpha
Ashford Hospitality Trust, Inc.'s (AHT) preferred shares are an attractive alternative to the hotel REIT's common shares due to their lower degree of volatility and competitive dividend yield. Investors that want to dial down investment risk might want to take a closer look at the REIT's preferred stock layer. An investment in Ashford Hospitality REIT's preferred stock yields 8.1 percent.
Just a few weeks ago, I covered the hotel real estate investment trust's common stock value proposition in my article titled "Ashford Hospitality Trust: Strong Buy?", in which I recommended the common stock to income investors due to an attractive valuation, high insider ownership, good dividend coverage, and high portfolio diversification. What the article didn't discuss, however, was the REIT's preferred stock. I would recommend reading the original investment thesis with respect to the common stock as laid out in the article mentioned above, and then, read about the preferred stock discussion here.
Common Stock Vs. Preferred Stock Value Proposition
In this article, I am going to refer to Ashford Hospitality Trust's 7.50% Series I Cumulative Preferred Stock (AHT.PI) which was issued at the end of 2017. The preferred stock's call date is 11/17/2022.
The Series I preferred stock has proven to be significantly less volatile than Ashford Hospitality REIT's common stock, especially during the brutal market sell-off in December. Preferred stocks have seniority in the capital structure,... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|ASHFORD HOSPITALITY TRUST||2.47||0.0||-1.85||0.24||9.27|
Older articles featuring Ashford Hospitality Trust (AHT):American Hotel Income Properties: Is The 13% Yield Safe After A Disappointing Q4?
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