Can a 14% Yield Be Safe?

High yields might not always be high risk....‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  [Wealthy Retirement]( SPONSORED [They Told Us NOT to Worry About COVID-19. But Then...]( [$100 Dollar Bill with Mask]( This [one critical natural factor]( may be the best defense we have... but it needs the right support. No matter what the mainstream media says, it'll take more than staying home and washing your hands to stay safe. That's why you need to know about the "[Perfect Drink]( If you have [these three natural ingredients]( in your kitchen, you can make it right now. [Get the details HERE.](  [SAFETY NET]( Can a 14% Yield Be Safe? Marc Lichtenfeld, Chief Income Strategist, The Oxford Club URGENT ACTION REQUIRED: To ensure that my research still reaches you, I need to make sure this is the correct email address. [Click here to continue receiving updates from me]( [Marc Lichtenfeld] Not surprisingly, shares of mortgage real estate investment trusts (REITs) have been hammered in the COVID-19 crisis. (On Monday, I explained whether you should still invest in these stocks. [Click here]( for my analysis.) Things were already difficult in the industry due to low interest rates. Mortgage REITs borrow money short term and lend it out longer term. The difference in the interest that they pay and that they receive (after expenses) is net interest income. With rates so low and the spread between short- and longer-term rates so tight, net interest income has been squeezed. Then came the coronavirus, sending interest rates plummeting further and causing massive economic damage. Now some people are no longer able to pay their mortgages. As a result, shares of many mortgage REITs are down by more than half since February. Arbor Realty Trust (NYSE: [ABR]( is one such mortgage REIT. Its stock is down 45% since its high of the year in February. As a result of the drop in price, its stock yields a gigantic 13.6%. But will its dividend follow its share price?  SPONSORED [Get Bill O'Reilly's Latest & Greatest!]( [The United States of Trump]( pro-Trump nor anti-Trump... ["This is a history book," 15-time bestselling author Bill O'Reilly says](. It's the historic, gripping account of the life of a sitting president. Take it from Bill... "If you want some insight into the most unlikely political phenomenon of our lifetime, you'll get it here." [Check it out now.](   Over the past several years, the company has steadily grown its net interest income. Importantly (and somewhat surprisingly), net interest income is forecast to rise this year by more than 8%. [Chart - ]  This year, the company is projected to pay out $115 million in dividends compared with $140 million in net interest income, so net interest income should cover the dividend. Last year, the [payout ratio]( was a little too high, as Arbor paid out $139 million in dividends despite bringing in $130 million in net interest income. That's really the only blemish on Arbor's dividend safety rating. Arbor paid a dividend from 2004 to 2008 and then stopped. While SafetyNet Pro takes dividend cuts and suspensions very seriously (it's a cardinal sin), it has a 10-year statute of limitations. So anything that happened before 2011 is forgiven. What Is SafetyNet Pro?SafetyNet Pro is a groundbreaking tool that predicts dividend cuts with stunning accuracy. With it, you can determine the dividend safety rating of nearly 1,000 stocks. Access to SafetyNet Pro is reserved exclusively for subscribers of Marc's newsletter, The Oxford Income Letter. To learn more about SafetyNet Pro and The Oxford Income Letter, [click here now](.  The company reinstated its dividend in 2012 and has [raised it every year]( since, including its most recent increase in February. As long as Arbor Realty's net interest income comes in at or above its dividend payout, the dividend should be fairly safe. That could be a big "if," as 2020 is not a normal year. But looking at the numbers, I don't believe shareholders have a lot to worry about in the short term when it comes to the safety of the dividend. Dividend Safety Rating: B [Dividend Grade Guide]  If you have a stock whose dividend you'd like me to analyze, leave the ticker symbol in the [comments]( section. And if you want to see if I've written about your favorite stock recently, click on "Search" in the upper right part of the homepage [here]( and type in the name of the company. Arbor Realty is a special case - it has an enormous yield that, for the moment, remains safe. In one of my recent [State of the Market]( YouTube videos, I revealed the names of three of my favorite safe, high-yielding stocks like this one. [Chart - ](  [Click here to watch the video](. Good investing, Marc [Leave a Comment](  MORE FROM WEALTHY RETIREMENT [Did COVID-19 Seal Brick-and-Mortar Stores' Fate?](    [Should You Own REITs?](    [How to Play Innovation in the Energy Sector](  [Facebook]( [Facebook]( [Twitter]( [Twitter]( [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0A High%20yields%20might%20not%20always%20be%20high%20risk... %0D%0A%0Dshared) [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0A High%20yields%20might%20not%20always%20be%20high%20risk... %0D%0A%0D  SPONSORED [OPEC Weapon to Hit U.S.?]( This isn't a bomb or chemical warfare, but it could severely damage the U.S. way of life. [Learn more.](  [The Oxford Club](  You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. [Privacy Policy]( | [Whitelist Wealthy Retirement]( | [Unsubscribe]( © 2020 The Oxford Club, LLC All Rights Reserved The Oxford Club | [105 West Monument Street](#) | [Baltimore, MD 21201](#) North America: [1.800.589.3430](#) | International: [+1.443.353.4334](#) | Fax: [1.410.329.1923](#) [Oxfordclub.com](   The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publications prior to following an initial recommendation. Any investments recommended by The Oxford Club should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. The information found on this website may only be used pursuant to the membership or subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club, 105 W. Monument Street, Baltimore MD 21201.