Dividends4Life: This 8.4% Yielding REIT Is Not A Value Trap

This 8.4% Yielding REIT Is Not A Value Trap

Posted by D4L | Monday, October 23, 2017 | | 0 comments »

This company’s shares were demolished after the REIT released disappointing first quarter earnings. The REIT’s have recovered somewhat, but still have an attractive reward-to-risk ratio. The net-lease REIT has taken active steps to address concerns over its tenant diversification. It should have no problems maintaining its dividend and making contractual debt payments, despite structural problems plaguing the retail sector. An investment in thestock yields 8.4 percent and shares are still in the bargain bin.

Spirit Realty Capital, Inc. (SRC) is not a value trap in my opinion. To the contrary, I think the retail net-lease REIT makes a very strong value proposition after the stock's sell-off earlier this year. The real estate investment trust has taken the necessary steps to reduce exposure to a large tenant, is far from violating its covenants, and is in a good position to keep paying shareholders a dividend. Spirit Realty Capital is a 'Strong Buy'.

Source: Seeking Alpha

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