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Broadmark Realty Capital: A New Commercial Mortgage REIT With A Targeted 12% Dividend Yield - Paid Monthly

Published Wed, 11 Sep 2019 07:00:00 -0400 on Seeking Alpha

As my readers know, I rarely recommend REITs that offer a double-digit dividend yield. It’s these high-yielding stocks that too often fall flat… though only after turning otherwise intelligent investors into speculators, hypnotizing them by the glare of fool’s gold.
In fact, I’ve become increasingly more bearish about these opportunities over the years. And although I didn’t coin the term “sucker yield,” I frequently use it to warn readers away from higher-risk securities.
Today, however, I’m going to provide you with a new name that could become well known in the REIT arena. This particular stock does have a high dividend yield, it’s true. But from what I can tell so far, it’s truly differentiated by design.
Source: Broadmark Investor Presentation
Now that I’ve let the cat out of the bag, I want to rewind for a moment. New readers should know something about my background before we proceed. It’s relevant to all of my analyses, but this one especially.
Here’s how…
My regular readers know I was a developer for more than 20 years. That was before I decided to forge a new path writing about real estate investment trusts, or REITs. During that time, I became associated with two friends who owned a large homebuilding business in South Carolina.
And they did very well for themselves.
At the peak of their real estate prowess in 2007, they held a dominant market share in homebuilding – with more than 500 houses either framed or... Read more