This Stock's 10% Yield Beats the Market. Its 10-Year Return Doesn't. Is It a Value Trap, or a Real Opportunity?
Ladder Capital has certainly been a value trap over the past decade.
Overview
A 10% dividend yield is alluring in today's market, where the S&P 500's dividend yield is around 1%. However, when that same investment has delivered a 4.7% average annual total return over the past decade, it looks less like an opportunity and more like a trap.
Those numbers present a real conundrum for investors considering Ladder Capital (NYSE:LADR) these days. Here's why I think the real estate investment trust (REIT) is a real opportunity right now despite its lackluster returns over the past decade.
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.