Real estate remains a top draw for investors looking for solid, inflation-protected income. Benefiting from trends and real asset demand, stocks in the sector continue to garner plenty of action from retail and institutional investors alike. Our latest Best Real Estate Dividend Stocks List pick is one such example of the quality you can find in the sector, rewarding shareholders recently with its 100th consecutive quarterly dividend increase! A feat investors can take advantage of by buying the stock before Tuesday, January 31 when the stock goes ex-dividend with a regular monthly payout of $0.2485 per share.
In the search for the Best Real Estate Dividend Stocks, 16 factors are scored across Real Estate sector dividend stocks and only the best combination of attractive yield, dividend safety, returns potential and low returns risk receive a Buy rating. Our process is systematic, goal focused and designed for moderate risk investors with a long-term horizon seeking allocation to Real Estate.
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The secret to our pick’s success has been its focus on free-standing real estate, sale-leaseback transactions, and triple-net leases. Featuring higher margins, long lease terms, and in-place tenants, our pick has grown from a single property in California to more than 11,000 across the U.S.! Thanks to an investment grade balance sheet and strong tenant quality, our pick continues to use its size to conduct major bolt-on acquisitions to fuel its long-term growth. Investors have won along the way. With its commitment to monthly dividends and providing safe, secure income for its large retail shareholder base, our pick has been a strong steward of capital.
This well-covered large-cap eREIT is yielding an attractive 4.3% with a $2.982/shr forward dividend that is paid monthly. Their $42.0B market cap ranks 6th out of 171 dividend stocks in the eREIT industry, the largest being Prologis (PLD) at $116.4B, and they have $16.9B in debt and $192.4M in cash.
The stock has support from both the sell-side and buy-side. Analysts are Overweight-rated on average with expectations for ffo/shr to grow a healthy 10% next year. Relative to the 52-week highs, the stock is inline with the S&P 500 at -11% vs -13% and is one of the better performing eREITs, which are -23% as a group.
Year-to-date, the stock has returned 6% vs 5% for the S&P 500 and 7% for the eREIT industry.