Braemar Hotels & Resorts: I'm Picking Up The Preferreds, They Might Still Dip
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Braemar Hotels & Resorts' 8.25% Series D Preferreds have seen a significant price drop due to rising US 10-year Treasury yields. Despite potential further dips, they offer an attractive yield and trade at a discount to their liquidation value. Dividends are covered by free cash flow, aided by recent debt refinancing and Fed rate cuts.
December 27, 2024 | 4:00 pm
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Braemar Hotels & Resorts' 8.25% Series D Preferreds have dipped due to rising Treasury yields but offer an 11.08% yield and trade at a discount. Dividends are covered by free cash flow, supported by debt refinancing and Fed rate cuts.
The preferred shares of Braemar Hotels & Resorts have dipped due to macroeconomic factors like rising Treasury yields. However, the high yield and discount to liquidation value make them attractive. The company's ability to cover dividends with free cash flow, aided by debt refinancing and rate cuts, supports a positive outlook.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80