REIT with 40%+ Dividend Growth over past 3 Years Reaffirms Position on Best Dividend Stocks List
Aaron Levitt Oct 16, 2019
There can be something to be said about owning tangible assets. Real estate offers diversification and acts as a hedge against economic uncertainty. This seems particularly poignant in today’s market environment with trade issues, geopolitical problems and rising uncertainty. And you can’t get more “real” than owning real estate. Which is why our Best Dividend Stocks List pick in the commercial real estate sector has been a wonderful selection in the current market environment.
The key is that our pick doesn’t just own any old property – its focus is on some of the largest and most important regions in the nation: places like New York City, Boston, Washington D.C. and San Francisco feature robust economies, increasing demand and relative insulation from geopolitical malaise. With more than 50 million square feet of rentable space in these key locations, our pick is one of the largest property owners in these areas and benefits greatly from their unique strengths.
Check out our original pick here.
And investors have been flocking to our pick as the income and tangibility of its assets make it a safe haven from current market uncertainties.
Even better is that our pick has continued to realize a boost from the Federal Reserve. As the Fed has cut rates to fight off slowing growth, high-yielding real estate investment trusts (REITs) like our pick have once again been in demand from income seekers. Meanwhile, lower rates and cheaper borrowing costs are a positive for business, which is great for our pick and its mortgage costs.
All in all, the combination of uncertainty, physically owned assets and the Fed has created a powerful play for investors seeking both income and a total return. The best part is many of the conditions propelling our pick aren’t abating anytime soon.
To summarize, here are five reasons why you should own this stock:
- Close to 200 prime properties – including twelve properties under construction – all located in five of the strongest markets in the nation.
- Recorded annual revenues of nearly $3 Billion with more than $850 million in cash available for distribution.
- Smartly developing new properties as well as using asset sales to boost occupancy and rent rates.
- One of the strongest balance sheets in the sector with a conservative leverage position.
- Healthy payout ratio of 59% and growing yield of 2.98%.
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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