Monday, March 4, 2013

Why Apollo Commercial Is Poised to Outperform

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT Apollo Commercial Real Estate Finance (NYSE: ARI  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Apollo Commercial and see what CAPS investors are saying about the stock right now.

Apollo Commercial facts

Headquarters (founded)

New York (2009)

Market Cap

$483.8 million

Industry

Mortgage REITs

Trailing-12-Month Revenue

$48.7 million

Management

President/CEO/CFO Stuart Rothstein
Chief Investment Officer Scott Weiner

Trailing-12-Month Return on Equity

9.1%

Cash / Debt

$115.2 million / $225.3 million

Dividend Yield

9.3%

Competitors

Capital Trust
iStar Financial
Resource Capital�

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 51 members who have rated Apollo Commercial believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star callumturcan, tapped the stock as a particularly attractive income opportunity:

[D]ividend yield of 9.2% with a payout ratio of 85%. This stock is a dividend gold mine, and I expect that they could easily pass on a larger dividend as they have minimal debt and are expected to grow their earnings by 7% over the next few years. I'm bullish and plan on buying some shares in this REIT.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Apollo Commercial may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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