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Ladder capital (LADR) passes the 8% interest rate limit

Looking at the stock universe we cover on Dividend Channel, shares of Ladder Capital Corp (symbol: LADR) traded above the 8% mark on a quarterly dividend basis ($0.92 annualized) during trading on Monday, with the stock changed owners. as low as $11.38 on the day. Dividends are particularly important for investors to consider because dividends have historically provided a significant portion of the total return in the stock market. For example, if you bought shares of the iShares Russell 3000 ETF (IWV) on 5/31/2000, you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or a decline of 0.6% over twelve years. But now consider that during the same period you collected a whopping $10.77 per share in dividends, increasing your yield to 13.15%. Even with dividends reinvested, that equates to an average annual total return of about 1.0%; so by comparison, collecting a return of over 8% would look significantly attractive if that return is sustainable. Ladder Capital Corp (symbol: LADR) is a member of the Russell 3000, giving it special status as one of the 3,000 largest companies in the U.S. stock markets.

In general, dividend amounts are not always predictable and follow the ups and downs of each company’s profitability. In the case of Ladder Capital Corp, looking at the history chart for LADR below can help assess whether its most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to earn an annual yield of 8% to expect.

LADR+Dividend+History+Graph


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Also see:

• DGHI market capitalization history
• AFL Dividend History
• BFH Dividend History

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.