For income-focused investors seeking stability and growth, this newly added stock to our Monthly High Dividend Portfolio stands out with an impressive three-year dividend compound annual growth rate (CAGR) of 42%. Operating in the grocery-anchored retail real estate sector, the company’s focus on necessity-driven shopping centers provides not only consistent rental income but also the potential for sustained dividend increases. With a forward dividend yield of 3.13% and a low payout ratio of 43%, it offers a rare combination of dividend growth and safety, making it an attractive choice for high-yield investors.
The retail real estate industry is capitalizing on strong macroeconomic trends, such as population migration to suburban areas, hybrid work models, and resilient consumer spending patterns. These dynamics have driven high occupancy rates, nearing 98%, and created opportunities for rental growth as demand outpaces supply. This company’s strategic expansion plans, backed by $750 million in liquidity and a robust acquisition target (of up to $325 million) for 2024, position it to capitalize on these trends and deliver long-term value to shareholders.
Despite some risks, including elevated leverage and inflationary pressures, the company’s disciplined management and steady cash flow generation provide a solid foundation for growth. Additionally, with FFO per share expected to grow by 8% year-over-year, the company continues to demonstrate operational strength and profitability.
Read the full article to discover why this stock deserves a place in your high-dividend portfolio.
