Chatham Lodging Trust: Why I Am Still Buying The High-Yielding Preferred Stock

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Skip to contentHome page Seeking Alpha - Power to InvestorsApr 25, 2026, 11:40 AM ETChatham Lodging Trust (CLDT) Stock, CLDT.PR.A StockThe Investment DoctorInvesting Group LeaderCommentsFollow us on Google for the latest stock newsFollow Seeking Alpha on Google for the latest stock newsSummaryChatham Lodging Trust's preferred shares offer an 8.3% yield, underpinned by robust FFO coverage and a strong balance sheet.CLDT's preferred dividends require less than 15% of pre-distribution adjusted FFO, with this ratio expected to improve as acquisitions contribute.The recent $92M acquisition of six Hilton-branded hotels at a 10% cap rate is not yet reflected in 2026 guidance, providing potential upside.I maintain an overweight position in CLDT.PR.A, viewing the market's risk perception as overly pessimistic given strong free cash flow and dividend safety.Looking for more investing ideas like this one? Get them exclusively at European Small-Cap Ideas.