The old saying goes “location, location, location.” But there is another important thing to focus on when it comes to real estate investing – and that’s lease terms. For our latest Best High Dividend Stocks Model Portfolio pick, it’s managed to use great lease terms to grow in size, generate significant cash flow and raise its dividend for the last 30+ years straight!
You can check out the Best High Dividend Stocks Model Portfolio to explore all the stocks.
The key for our pick is that it focuses on free-standing retail and service properties. These are suburban staples, dotting every town and city across America. The best part is that our pick uses the Holy Grail of leasing terms for its properties: triple-net-leased. This means our pick can push off many of the property costs onto its tenants. With strong occupancy rates and a rock-solid tenant group, our pick has long generated cash flow to support growth and its investors.
Going forward, our pick has continued to use smart M&A, sale-leasebacks and buyouts to further grow its property portfolio. And it’s not afraid to prune it either, taking advantage of gains on its buildings to produce extra cash.
All in all, our pick’s long history of dividend strength makes it a top high-yielding stock for portfolios.
In order to make room for our new triple-net-leased real estate firm, we’ve been forced to remove a communications stock from the portfolio.
