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If diversity is what you're seeking, here are two off-beat but high-yield stocks. PacWest Bancorp (PACW) - Get PacWest Bancorp Report and Starwood Property Trust (STWD) - Get Starwood Property Trust, Inc. Report , aren't your usual fare, but they sure do pack a dividend punch.

PacWest, a bank holding company, and Starwood, a real estate investment trust (REIT) offer exceptional yields -- much better than a number of their major competitors. PacWest generated a robust profit margin. Starwood is following a sound strategy in managing its capital. 

PacWest Bancorp

PacWest Bancorp is a bank holding company with $21 billion in assets with one wholly owned banking subsidiary, Pacific Western Bank.

This regional-Pacific lender offers a mind-boggling 4.86% yield or $2 per share payout annually. With a dividend track record of five years, the stock currently pays two-thirds of its earnings as dividends.

Dividend growth has been phenomenal. The company, which paid $0.21 per share in 2011, today pays $2 a share - an upswing of 10 times.

Consider the other giants in this space, and you'll know why we think this is a stock that demands your attention: the best bank bet in town Wells Fargo, a Warren Buffett holding, has tripled dividends in the same time. Bank of America shares fetch you a measly 20 cents a share, up from 4 cents in 2011. Morgan Stanley has doubled dividends over the 2011-2015 period.

Wells Fargo is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. See how Cramer rates the stock here. Want to be alerted before Cramer buys or sells WFC? Learn more now.

With earnings per share (EPS) projected to grow by 10% y/y every year for the next half a decade, PacWest Bancorp will easily out-perform the regional pacific banking space (8.18%).

Further, its comfortable payout ratio, helps the stock fetch you growing and stable dividends with an yield that's higher than the 1%-3% offered by many mainstream lenders.

Trading at 1.12 times price to book value, the stock is cheaper than peers including U.S. Bancorp, which is trading at 1.8 times book and is on the higher side and offers a 1% pedestrian yield on the dividend front.

With nearly a 35% profit margin and good return ratios, PacWest Bancorp is a smart investment opportunity, etching a niche for itself in its segment.

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Starwood Property Trust

Another mouth-watering yield-creator, Starwood Property Trust offers a 9.37% yield. At current market capitalization of about $5 billion, Starwood Property Trust is a portfolio of more than $9.5 billion across the company's Lending, Investing & Servicing and Property business segments.

The company carries its unique ability to leverage the platform of Starwood Capital Group, a leading global private investment firm with 24 years of experience and wide-ranging operating expertise across virtually every real estate asset class.

In terms of earnings, the company is doing reasonably well.

Starwood Property Trust first quarter FFO of $0.50 was in-line based on revenues of $195.49 million. The company is being cautious with its capital deployment, which we believe is a prudent strategy.

The company's superlative 9% yield along with three years of dividend growth is a good alternative to dividend aristocrats such AT&T (4.94%), T. Rowe Price (2.82%), Colgate-Palmolive (2.21%), Franklin Resources (1.94%) and Medtronic (1.87%).

Even among REITs, Starwood Property Trust offers a fantastic yield, which is among the best in its space.


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This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.