Starwood Property: No Margin Of Safety For Dividend (Rating Downgrade)

Core Viewpoint - Starwood Property Trust (NYSE: STWD) has struggled to cover its quarterly dividend of $0.48 per share for the third consecutive quarter, with a pay-out ratio of 100% and a year-over-year decline in distributable profits [1] Financial Performance - The company reported a pay-out ratio of 100%, indicating that all distributable profits were used to cover the dividend [1] - There has been a year-over-year decrease in distributable profits, which raises concerns about the sustainability of the dividend payments [1]