An Undiscovered High-Yield REIT

In February, Lamar Advertising (LAMR) declared a quarterly dividend of $0.68/share. The board expects a total 2015 annual distribution of $2.75/share, a 10% increase from the prior annual dividend of $2.50. After a conversion to a REIT structure, shares are now yielding >5%. Is now the time for investors to get interested?

Lamar Advertising sells advertising on billboards, buses, shelters, benches and logo plates in the U.S., Canada and Puerto Rico. The company owns and operates approximately 145,000 billboards (including 1,880 digital billboards), 120,000 logo-advertising displays and 38,000 transit-advertising displays. While simple, this profit-generating business has been around for over a century. Upon its conversion to a REIT, Lamar is now required to pay out at least 90% of its income to shareholders. Lamar completed the conversion earlier this year, causing its dividend payout to rise in accordance to REIT structure rules.

Source: Guru Focus

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