Private lending fears have spread far beyond the handful of companies that could be affected if there are actual problems with the $1.5 trillion that have been issued as private loans to corporations. It seems the contagion has spread to finance real estate investment trusts (REITs), which have nothing to do with private lending investments.
When you get high-yield stocks—where dividends are secure—and the market drives down the share price, pushing up the yield, it’s time to pick up some shares and lock in those yields.
Below, I’m featuring two companies that have grown into more than simple finance REITs. The diversified businesses support their dividends, and give potential share price appreciation when the investing public figures them out.
Rithm Capital (RITM) was launched in 2013 (then known as New Residential Investments) as an REIT focused exclusively on the mortgage-servicing rights (MSR) market. Since 2020, Rithm has grown into a diverse investment platform across the real estate and financial services sectors.
This slide from Rithm’s fourth-quarter earnings call presentation shows the current diversified businesses under the Rithm Capital umbrella:
Rithm made two acquisitions in December 2025. Crestline, an Alternative Asset Manager, was acquired on December 1. Paramount Group, an owner-operator of Class A office buildings in NYC and San Francisco, was acquired on December 18.
RITM pays a $1.00 annual dividend and most recently generated $2.35 per share in earnings available for distribution. That is a very well covered 11% dividend yield.
Starwood Property Trust launched in August 2009. The company was solely involved in commercial mortgage lending. This graphic from the most recent earnings presentation shows the diversification of the STWD portfolio:
Starwood Property Trust has paid an uninterrupted quarterly dividend of $0.48 per share since the start of 2014. Chairman and CEO Barry Sternlicht has repeatedly stated that STWD will continue to pay dividends. 2025 earnings came up a little short of the dividend, but recent investments and acquisitions should quickly increase the payout coverage. I view the dividends from this 11%-yielding REIT as an ongoing annuity I can count on.
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