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Income Expert Checks in at Chatham Lodging

03/20/2018 5:00 am EST

Focus: DIVIDEND

John Dobosz

Editor, Forbes Premium Income Report and Forbes Dividend Investor

Each day I scour the market for opportunities in stocks; I focus on stocks that have safe and generous yields, usually averaging 4.5%, explains income specialist John Dobosz, editor of Forbes Dividend Investor.

West Palm Beach, Forida-based Chatham Lodging Trust (CLDT) is a real estate investment trust that invests in upscale and premium-branded hotels.

Chatham owns interests in 135 hotels with 18,516 rooms, including 40 wholly owned properties with 6,018 rooms, in 15 states and the District of Columbia. It also owns a minority interest in two joint ventures with 95 hotels and 12,498 rooms.

Revenue this year is expected to climb 5% to $313.9 million. Chatham is a monthly dividend-payer, with the ex-dividend date for the next $0.11 per share payout coming up on March 27.

Chatham produced a 10.7% total return for us in the Top 25 from April 21, 2017, through February 9, 2018, when we got rid of CLDT because it violated a 10% trailing stop. The stock was at $20.88 one month ago, and it went on to drop to lows near $18 at the end of last month.

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In addition to the monthly dividend and discounted valuations relative to history (above), what’s also encouraging about CLDT is a rash of buying in the past two weeks by company insiders, including the chief executive officer, chief operating officer, and chief investment officer.

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