Starwood Property: Don't Fool Yourself, A Dividend Cut Is Coming (Rating Downgrade)

Starwood Property Trust, Inc. again failed to cover its $0.48 dividend in Q2 '26, marking six consecutive quarters of under-coverage. STWD's dividend coverage ratio was 83% in Q2 '26, lagging peers Ladder Capital and Blackstone Mortgage Trust, both of which exceeded 100%. Despite improving collateral diversification and a robust liquidity position, persistent dividend undercoverage puts STWD's payout at risk.