Dividends4Life: Time To Buy This 8.7% Yielding Commercial Property REIT?

This company is a promising REIT income vehicle. It derives a large percentage of its revenues from long-term lease contracts which helps create a stable cash flow stream for the REIT. The company has excellent dividend coverage stats for a 9 percent yielder. Low AFFO payout ratio implies significant potential for continued dividend growth. The REIT’s shares sell for a competitive run-rate AFFO multiple. An investment in the stock yields 8.7 percent.

Lexington Realty Trust (LXP) looks like a promising buy on the drop. The real estate investment trust sells for a highly competitive AFFO multiple, and the company provides income investors with an unexpectedly high margin of dividend safety. Lexington Realty Trust easily covers its dividend with cash flow, hence, I judge the dividend to be sustainable going forward. An investment in Lexington Realty Trust at today’s price point yields 8.7 percent.

Source: Seeking Alpha

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