Dividends4Life: This REIT's Preferred Stock Limits Investors' Risk And Yields 6.1%

Dividend Growth Stocks News

This REIT's common shares crashed in May of this year after the REIT adjusted its AFFO guidance. While it has reduced its exposure to its largest retail tenant a lot of income investors are still avoiding the REIT. I think company's preferred stock layer offers good value. The REIT's Series A preferred stock has only recently begun trading. The Series A comes with a yield of 6.11 percent, and is a less risky way of investing in the REIT business.

Spirit Realty Capital, Inc. (SRC) is a REIT at the higher end of the risk spectrum due to its exposure to Shopko, a retailer that has been closing stores in the struggling retail industry. Income investors who think Spirit Realty Capital's 8.3 percent common stock yield is too risky can take a look at the REIT's preferred stock layer to find good value instead. The REIT's preferred stock would be a good income vehicle for more risk-conscious investors who are concerned about the REIT's exposure to the retail industry.

Source: Seeking Alpha

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