Looking strictly at the headlines, real estate investment trusts (REITs) have taken it on the chin in recent months as the Federal Reserve raised interest rates.
However, it hasn’t been entirely bad for commercial real estate and the firms that own it. Those stocks with huge swathes of properties in the right locations and markets are doing quite well. And that sums up our real estate Best Dividend Stock List’s pick.
See our original article on our pick here.
Choosing to focus on one major recession-resistant market in the country, our real estate pick has continued to command high occupancy rates and even higher rents. Even better is that this region features limited room to grow and high barriers to entry. This gives our pick near monopoly status when it comes to its buildings.
All of this has translated into steady gains, steady cash flows and, ultimately, steady dividend increases for investors.
To summarize, here are five reasons why you should own this stock:
- A focus on high barrier-to-entry office and apartment buildings – with a strong, affluent customer base.
- Over the last ten years, adjusted funds from operations have grown by 125%.
- Since its IPO, it has more than doubled the return of the broader MSCI REIT Index.
- Since cutting its quarterly payout by more than 45%, the company has raised its payout by 130% since Q1 2009.
- Healthy payout ratio of 48% and growing yield of 2.26%.
