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Focus on Premier Properties Helps This REIT Reaffirm Position on Best Dividend Stocks List

Aaron Levitt Jul 03, 2019


Sometimes, the market hands you a gift. For dividend investors this came courtesy of the Federal Reserve. With its new “patient” stance on rates, investors looking for high-yielding stocks are able to shop for some of the best yielders on the market without fear of seeing their share price dip. High-yielding stocks tend to dip as rates rise. But with the Fed now pausing on its pace of rate hikes, high-yielding stocks – such as our Best Dividend Stocks List pick in the commercial real estate sector – can now be bought once again.

Thanks to the pause and the potential cutting of rates, our pick has the potential to win on several fronts.

For one thing, our pick remains one of the largest operators of prime office space in the country – with more than 50 million square feet of rentable space. Moreover, these buildings are in the hotbeds of economic activity including Boston, Los Angeles, New York, San Francisco and Washington, DC. Continued economic growth in these locations will only help push rents and occupancy rates higher. That’s great for our pick’s bottom line. Additionally, lower rates will increase our pick’s ability to borrow money cheaper and expand its portfolio and reduce its own costs.

Check out our original pick here.

And we can’t forget the fact that during periods of falling rates, high-yielding stocks, such as our pick, continue to be in high demand from investors seeking more income. Plenty of capital gains can be on the horizon.

All in all, our pick has long used its status as a premier office property owner to drive revenues, rents and, ultimately, dividends for decades. With the Fed handing our pick a gift, this fact should only be enhanced further over the upcoming months.

To summarize, here are five reasons why you should own this stock:

  1. Operates close to 200 prime properties in the five strongest markets in the nation, with an occupancy rate of over 92%.
  2. Recorded annual revenues of more than $2.5 billion with nearly $650 million available for distributions.
  3. Smartly developing new properties in its markets, including many higher-margined green/LEED-certified offices.
  4. Great steward of investors’ capital,-returning more than 1,200% since its IPO in the late nineties – that’s more than 3x the S&P 500!
  5. Healthy payout ratio of 59% and growing yield of 2.95%.

Our Best Dividend Stocks List has 20 of the highest-rated stocks by our proprietary rating system. Go Premium to find out the entire list.

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