Summary: Starwood Property Trust is a leading U.S. diversified finance company and real estate investment trust (REIT) known for its diverse portfolio of commercial mortgages. This guide will explore the process of how to buy Starwood Property Trust stock using a regulated online brokerage platform like eToro.
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About Starwood Property Trust
About
As one of the largest commercial mortgage REITs in the U.S., it focuses on commercial and residential mortgage lending, property acquisitions, and investments in real estate-related assets. It manages a portfolio of $28 billion across debt and equity investments, and its STWD is one of the top dividend stocks.
As of December 2023, Starwood Property Trust has a dividend yield of 8.78% and a market capitalization of $6.26 billion.
Additional investing
How to buy Starwood Property Trust stock: step-by-step
Since Starwood Property Trust stock is a publicly traded New York Stock Exchange asset, you can freely invest in it. Purchasing the stock can be done in the following five steps:
Step 1: Choose a broker
Prior to investing in STWD, you have to secure access to the stock market. The best approach to this is an online brokerage platform.
To securely buy Starwood Property Trust stock (STWD), we recommend the following:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
You might also want to consider investing in other high-dividend REITs such as:
- Realty Income (NYSE: O)
- Annaly Capital Management (NYSE: NLY)
- Arbor Realty Trust (NYSE: ABR)
- Omega Healthcare Investors (NYSE: OHI)
Step 2: Open and fund your account
Once you opt for an online brokerage platform, you should proceed to register an account and go through the verification process. The service should promptly send the instructions to your email.
Upon verifying your account, you will need to transfer funds to your account. You will use the money to purchase high dividend REIT stocks like Starwood Property Trust using some commonly available payment options such as bank transfer, debit or credit card, and financial transaction services such as PayPal.
Step 3: Decide how much you want to invest
As you receive the funds in your account, you must decide on the sum available to invest in STWD. Understanding your budget’s limits is vital, as overspending can cause serious trouble. To uphold financial security, ensure you have done the following:
- Paid off all high-interest debt, such as credit cards and personal loans;
- Created an emergency fund that covers three to six months of daily life expenses.
Remember
Step 4: Place your order and buy STWD stock
The next step is to place an order and buy STWD stock. Do the following steps:
- Step 1: Log into your online brokerage platform and find the ticker symbol STWD;
- Step 2: Specify the amount of money or the number of Starwood Property Trust shares you want to purchase;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Confirm the trade order.
Step 5: Monitor and manage your investment
High-dividend REITs require less maintenance than active investing assets like face-value stocks since investors usually hold them, but you still need to track your investment regularly.
Keep in mind the REIT’s performance and financial status, as well as the general mortgage market trends, the property sector, and the health of the global market. These are all indicators used to benchmark your investment’s success chance.
STWD stock price today
Pros and cons of buying Starwood Property Trust stock (STWD)
Pros
- Excellent dividend yield: Starwood Property Trust has a high dividend yield of 8.78% as of December 2023, one of the highest dividend yields currently on the market;
- Diversification: Starwood Property Trust has a diverse real estate market portfolio, allowing investors to tap into the real estate market without the hassle and costs of owning and managing property;
- Parent company leverage: Starwood Property Trust is an affiliate of Starwood Capital Group, a global private investment firm, and it can utilize the assets and data available to the parent company;
- Liquidity: Unlike actual property, which requires significant time and effort to buy or sell, REITs are traded on public exchanges quickly and easily.
Cons
- Interest rate sensitivity: Starwood Property Trust relies on borrowing as its primary growth method due to being obliged to pay most of its income to shareholders. This approach leaves the REIT highly susceptible to changes in interest rates;
- Regulatory risks: REITs like Starwood Property Trust are subject to shifting regulations and tax laws that can influence their operations and profitability;
- Potential for dividend fluctuations: While REITs aim to provide a stable passive income, unfavorable economic conditions and lackluster company performance can lead to dividend fluctuations.
Common mistakes to avoid when investing
Make sure to avoid these common investing mistakes:
- Lack of research: Research the Starwood Property Trust company and its REIT stock in detail, along with the market state of the mortgage and property sectors, before investing;
- Lack of strategy: Set your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Starwood Property Trust stock
Where is Starwood Property Trust's stock listed?
Starwood Property Trust is listed under the STWD ticker on the New York Stock Exchange.
How do I buy Starwood Property Trust stock?
Investors can buy Starwood Property Trust stock through an online brokerage platform like eToro.
Does Starwood Property Trust pay dividends?
Yes, Starwood Property Trust pays dividends with a dividend yield of 8.78% as of December 2023.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
