Dividends4Life: Buy This 5% Yielding Recovering REIT

Dividend Growth Stocks News

Buy This 5% Yielding Recovering REIT

Posted by D4L | Monday, September 12, 2016 | | 0 comments »

Few income vehicles lend themselves to income investing as much as real estate investment trusts. REITs assemble portfolios of residential or commercial properties, and lease them to tenants. In the case of retail REITs, many tenants have a national presence and rely on REIT properties to grow their business. The rent collected from tenants is then passed through to shareholders as a monthly or quarterly dividend. This company's shares are up ~30 percent YTD, and have surged ~54 percent from January lows. Despite the increase in valuation, the REIT is not too expensive yet for income investors. A piece of its business sells for ~13.5x 2016e AFFO. An investment in the stock yields 5.33 percent.

VEREIT, Inc. (NYSE:VER), formerly known as American Realty Capital Properties. VEREIT has staged a strong comeback this year, which is the result of two forces: 1. Investors have rediscovered their love for stable income vehicles this year, including real estate investment trusts. The rekindled love affair between REITs and income investors has been possible because of the Federal Reserve, which pushes yield-starved investors into high-yielding securities. 2. Investor sentiment toward VEREIT has gradually improved in 2016, and VEREIT's Chief Executive Officer deserves at least some of the credit. Non-core asset sales and a rationalization/de-risking of VEREIT's property portfolio has enticed income investors to give the real estate investment trust another chance after it fell out of grace due to an accounting scandal and a dividend suspension.

Source: Seeking Alpha

Related Articles:
- How To Manage Your Dividend Portfolio In A Downturn
- 5 Tech Stocks With A History of Growing Their Dividends
- 8 Dividend Stocks For The Ultimate In Deferred Gratification
- The Most Important Thing To Consider When Selecting A Dividend Stock
- 5 Healthcare Stocks With Growing Dividends Yielding In Excess of 2%

________________________________________________________________

0 comments

Post a Comment

Note: Only a member of this blog may post a comment.