Is Resource Capital Corp. (NYSE:RSO) really a resourceful company?


Dallas, Texas 09/11/2013 (Financialstrend) – In Tuesday’s trading session, Resource Capital Corp. (NYSE:RSO) stock rose by 0.17%. The opening price of the shares was $6.01 which trended to an intraday high of $6.03 and dipped to close at $6.01. Around 0.603 million shares were traded on Tuesday while the average volume of shares traded over a 30 day period was 1.04 million. The company has a market capitalization of $763.27 million.

Attraction point

For those who invest in REIT’s the attraction quotient of the investment is generally intertwined to the pretty large dividends that are paid out by these companies. But is it really wise to focus more on the dividend and less on the stock. That is more like counting your chicken before the eggs hatch. For any REIT to pay out a dividend, it will first have to generate significant income.

The lender

With reference to this, it is also important to recognize that Resource Capital Corp. (NYSE:RSO) is a lender first and a direct real estate investor next. And so, for those who wish to invest in this company, understand this. Dividend stocks have the potential to add to your pockets. They do not really garner the notoriety that the sky-touching growth stocks do, but remember that the chances of then crashing and burning are lower too. In the long-term, the compounded effect of their growth and quarterly payouts adds up much more rapidly that most investors believe they can.

About the company

Resource Capital Corp. (NYSE:RSO) is a specialty finance-company. It primarily focuses on commercial real-estate and commercial-finance. It conducts its operations as a REIT. RSO invests in a combination of some commercial real-estate debt and various other real estate-related assets. To a smaller extent it invests in higher-yielding commercial-finance assets. The company has investments in a variety of asset-classes, such as commercial real-estate related assets like commercial real-estate property, whole-loans, A-notes and mezzanine loans, among others.