Arbor Realty Trust (ABR): A Double-Digit Yield for Under $20

Arbor Realty Trust, Inc. (NYSE:ABR) is included among the 13 Best Dividend Stocks to Buy Under $20.

ABR is a mortgage REIT centered on multifamily properties. It had maintained a pattern of steady dividend increases until mid-2023. The company halted further hikes as rising interest rates started to impact the multifamily sector and its overall earnings. At the time of its last dividend increase in July 2023, the payout ratio stood at 75% of distributable earnings, but that number has since climbed to nearly 150%.

Earnings weakened further moving into 2025. For the first quarter, Arbor Realty Trust, Inc. (NYSE:ABR) posted $0.28 per share in distributable earnings, or $0.31 per share when adjusted for a $7.1 million loss from the sale of two properties. As a result, the dividend was trimmed to $0.30 per share. If the earnings trend continues downward, another reduction could be considered. As of July 21, the stock has a dividend yield of 10.62%.

Even so, Arbor Realty Trust, Inc. (NYSE:ABR) isn’t without potential support. In addition to its primary focus on relatively low-risk multifamily assets, the company also earns revenue through loan origination and servicing, single-family rental operations, and commercial real estate holdings. This diversified model can provide some stability during different stages of the economic cycle.

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Disclosure: None.