Industrial REIT for Steady Passive Income

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===THE DIVIDEND$ $ERIE$:===

Photo by Amr Taha™ on Unsplash

Today, we’re going to be talking about a topic that may not seem exciting at first, but is actually incredibly important – industrial REIT stocks that pay dividends. Now, before you tune out, hear us out! 

We’ll be covering the top 6 industrial REIT stocks that we think could be great additions to your investment portfolio, including Prologis (PLD), Digital Realty (DLR), STAG Industrial (STAG), National Storage Affiliates (NSA), Extra Space Storage (EXR), and Terreno Realty (TRNO). 

These stocks not only offer the potential for growth, but also provide a steady stream of income in the form of dividends. So, if you’re looking to get started with investing or want to add some dividend-paying stocks to your portfolio, then this is the video for you. Let’s dive in and learn about these exciting opportunities!


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REIT WHAT?

What is a REIT?

A quick recap for anyone just joining us: What the heck is a REIT? It’s short for Real Estate Investment Trust. REIT is an investment vehicle that allows you to invest in income-generating real estate properties without having to manage them yourself.

Not only that, but investing in a REIT can also provide you with a steady stream of passive income, as they’re required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends. 

Image from The Real Property Association of Canada (REALPAC)

The best part of a REIT it that it give your stock portfolio exposure to various types of real estate properties such as office buildings, malls, apartment block and industrial complexes.

REITs lets you receive the consistent income of owning real estate WITHOUT the hassle of owning physical properties. So, if you want to build wealth through real estate, REITs might just be the perfect fit for you.


TABLE OF CONTENTS

1. Prologis, Inc. (PLD)
      MINI QUIZ #1:

2. Digital Realty Trust Inc. (DLR)
      MINI QUIZ# 2:

3. STAG Industrial (STAG)
     MINI QUIZ# 3:

4. National Storage Affiliates Trust (NSA)

5. Extra Space Storage (EXR)

6. Terreno Realty Corporation (TRNO)

7. QUIZ SOLUTIONS #1,2,3


1. Prologis, Inc. (PLD)

Alright, let’s start with the first stock on our list – Prologis, Inc. (PLD). Did you know that Prologis has been paying dividends since way back in 1998? That’s over two decades of consistent income for its shareholders.

But that’s not all – Prologis also offers portfolio diversification, with a global portfolio of high-quality logistics properties spanning across 19 countries, totaling over 980 million square feet.

Now, let’s talk numbers. The average historical dividend yield for Prologis is around 2.2%. 

For 2023, its projected dividend is UDS$3.48/ year/ share.

FUN FACT: Prologis is actually the largest owner of logistics real estate in the world, with notable tenants including Amazon, Walmart, and DHL.

So, there you have it – the rundown on Prologis. And, just as a reminder, Prologis pays out dividends quarterly in March, June, September, and December. 

MINI QUIZ 1:  

Are you ready for a math challenge? Let’s sharpen our math skills with a word problem featuring our main character, Alex.

Alex wants to invest in Prologis, a real estate investment trust that pays an annual dividend of USD$3.48 per share. He can only afford to buy one share each month, and he wants to know how much he will earn in dividends after 3 months, assuming the share price and dividend remain constant.

First, calculate how many shares Alex will own in three months. Since he can only buy one share each month, he will own a total of three shares.

Now, let’s calculate how much Alex will earn in dividends. Prologis pays dividends once every 3 months, so Alex will receive one dividend payment in three months.

To calculate the dividend payment for each share, we divide the annual dividend by the number of quarterly payments in a year, which is 4.

So, Prologis pays a dividend of USD$0.87 per share every quarter (USD$3.48 / 4).

QUESTION: HOW MUCH DOES ALEX EARN IN DIVIDEND IN 3 MONTHS?

SOLUTION #1: (is at the end of this article 😀)

-TOP-


2. Digital Realty Trust Inc. (DLR)

Up next we have Digital Realty Trust Inc. (DLR)

Digital Realty Trust started paying dividends in 2005 and has a strong focus on data centres, which provides great growth potential as the demand for data storage continues to soar. 

In terms of portfolio diversification, Digital Realty owns and operates an impressive portfolio of 284 facilities in 48 metros across 23 countries on six continents.

DLR has an average historical dividend yield of 3.3%.

For 2023, its projected dividend is UDS$4.88/ year/ share.

FUN FACT: Digital Realty was founded in 2004 and has been named one of the world’s most sustainable companies by Dow Jones Sustainability Indices. And, it operates in 23 countries across the Americas, Europe, and Asia.

Don’t forget, their dividend payments are made in January, March, June, and September.

MINI QUIZ 2:  

Rei buys 1 share of a stock every month. Every 3 months she receives a dividend. 1 share cost $90 to buy. The annual dividend payment is $4.88 per year.

Rei will have 3 shares in 3 months which will generate a dividend payment of SUM1. 

Rei continues to buy 1 share every month. After 6 months she has 6 shares, at which time she receives a second dividend payment of SUM2. 

 QUESTION, WHAT ARE THE ANSWERS TO SUM1 AND SUM2?

SOLUTION #2: (is at the end of this article 😀)

-TOP-


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3. STAG Industrial (STAG)

Third on our list is STAG Industrial (STAG). This company has been paying out dividends since 2011 and has a focus on single-tenant industrial properties, which includes small and mid-sized tenants. 

With a portfolio of 478 properties totaling 100 million square feet, plus, with an average historical dividend yield of 4.1%, investors can enjoy a steady stream of passive income. This one of the few unicorn stocks that pays out dividends EVERY MONTH!

For 2023, its projected dividend is UDS$1.47/ year/ share. 

FUN FACT: STAG Industrial was named one of Fortune’s Fastest Growing Companies in 2020, and some of its notable tenants include Home Depot, Sysco, and UPS.

Operating in 38 of the 50 states across the United States, making it a great investment option for those seeking regular payouts.

MINI QUIZ 3:  

Sol buys 1 share of a stock every month. Every month he receives a dividend.

1 share cost $33 to buy. The annual dividend payment is $1.47 per year. Sol will have 1 shares at 1 months which will generate a dividend payment of SUM1. 

Sol continues to buy 1 share every month. After 2 months he has 2 shares, at which time he receives a second dividend payment of SUM2. 

After 3 months he has 3 shares, at which time he receives a second dividend payment of SUM3. 

QUESTION, WHAT IS THE TOTAL AMOUNT OF DIVIDENDS SOL RECEIVES AFTER 3 MONTHS?

SOLUTION #3: (is at the end of this article 😀)

-TOP-


4. National Storage Affiliates Trust (NSA)

Next up, we have the National Storage Affiliates Trust. NSA has been paying dividends since 2015 and has a track record of growth through acquisitions. With a portfolio of 850 self-storage properties across 38 states in the United States, NSA has a strong foothold in the growing self-storage market.

It has an average historical dividend yield of 3.9%

For 2023, its projected dividend is UDS$2.20/ year/ share. 

Not only that, but NSA also boasts a diverse tenant base, including big names like PepsiCo, Sherwin Williams, and Coca-Cola. And if you’re looking for consistent dividend payments, NSA distributes its dividends every March, June, September, and December.


5. Extra Space Storage (EXR)

Fifth on our list is Extra Space Storage (EXR).

EXR has been paying dividends since 2004, and it’s easy to see why it’s considered a strong investment. With high demand for storage space in urban areas and a focus on technology and innovation, EXR has excellent growth potential.

The company has a well-diversified portfolio. As of September 30, 2020, the company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico with over 140 million square feet of rentable storage space.

While EXR’s average historical dividend yield is 2.5%.

or 2023, its projected dividend is UDS$6.48/ year/ share. 

FUN FACT: EXR is the second-largest self-storage REIT in the US. Some of their high-profile clients include Amazon, Coca-Cola, and Walmart, who rely on EXR’s storage facilities to manage their inventory and logistical needs.

EXR operates primarily in the United States and pays dividends quarterly in March, June, September, and December. 


6. Terreno Realty Corporation (TRNO)

Rounding out our list is Terreno Realty Corporation (TRNO).

Founded in 2009 by a team of experienced real estate professionals, Terreno Realty Corporation focuses on the acquisition, development, and management of industrial real estate in six major coastal U.S. markets. This strategy of owning high-quality properties in infill locations provides stability and growth potential.

Currently, Terreno Realty Corporation owns and operates a portfolio of 220 industrial properties totaling over 14 million square feet. And with high-profile tenants like Amazon, DHL, and FedEx, you can trust that your investment will be in good hands.

The average historical dividend yield for Terreno Realty Corporation is 1.7%. 

For 2023, its projected dividend is UDS$1.60/ year/ share. 

As for dividend payments, Terreno Realty Corporation pays its shareholders every January, April, July, and October.


Alright, folks! That’s a wrap for our post on industrial REITs. Investing in REITs can be a great way to diversify your portfolio and gain exposure to the real estate market without the hassle of owning physical property.

Just remember, investing involves risk, and it’s always a good idea to consult with a financial advisor before making any investment decisions. 

Thanks for reading all the way to the end, and we hope you found this article informative and enjoyable. Do join our email list and you’ll be notified of new articles.

Until next time – Happy Investing!


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ANSWER TO QUIZ #1:

Since Alex owns three shares, he will earn a total of USD$2.61 in dividends in three months (3 shares x USD$0.87 per share per quarter = USD$2.61).

Congratulations, Alex! You’ve earned USD$2.61 in dividends from your investment in Prologis in just 3 months. 

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ANSWER TO QUIZ #2:

A dividend payment is a portion of a company’s earnings that is distributed to its shareholders. It is usually paid out quarterly.

Now, let’s move on to the word problem at hand. We are given that Rei buys 1 share of a stock every month, and that the cost of 1 share is $90. We are also given that the annual dividend payment is $4.88 per year.

After 3 months, Rei will have 3 shares of the stock, and she will receive a dividend payment. The total dividend payment for these 3 shares can be calculated as follows:

Total dividend payment 

= (Number of shares) x (Dividend per share)

= 3 x ($4.88/12)

= $1.22

Therefore, the answer to SUM1 is $1.22.

After 6 months, Rei will have 6 shares of the stock, and she will receive a second dividend payment. The total dividend payment for these 6 shares can be calculated as follows:

Total dividend payment 

= (Number of shares) x (Dividend per share)

= 6 x ($4.88/12)

= $2.44

Therefore, the answer to SUM2 is $2.44.

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ANSWER TO QUIZ #3:

First, let’s calculate the monthly dividend payment for one share:

$1.47/12 months = $0.1225 per month

So, after one month, Sol will receive a dividend payment of $0.1225 for his one share.

After two months, Sol will have two shares, and the dividend payment will be:

2 shares x $0.1225 per share = $0.245

So, SUM2 = $0.245

After three months, Sol will have three shares, and the dividend payment will be:

3 shares x $0.1225 per share = $0.3675

So, SUM3 = $0.3675

To find the total amount of dividends Sol receives after three months, we need to add up the dividend payments from each month:

SUM1 + SUM2 + SUM3 = $0.1225 + $0.245 + $0.3675 = $0.735

Therefore, Sol will receive a total of $0.735 in dividends after three months.

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🔥Join our community of like-minded individuals! Ignite your curiosity, expand your horizons, get inspired to create wealth and open your mind to money making opportunities! 🔥Sign up for the Weekly Sprout newsletter here. 🔥


Hey there, amazing readers!

I wanted to give you a heads-up that there might be links in this article that are affiliate links. What does that mean? Well, if you happen to make a purchase through those links, I may earn a commission. But fret not! I promise to only recommend products and services that I wholeheartedly believe in and have personally vetted. Your incredible support through these links truly helps maintain the top-notch quality of this site that you love. Thank you so much for being a part of this journey!

Warmest regards,
Jenn❣️


Legal stuuuf: The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Investing in dividend stocks carries risks, including the potential for loss of principal. It is important to do your own research and consult with a financial advisor before making any investment decisions. The author of this article does not hold any positions in the stocks mentioned and has no financial relationships with any of the companies mentioned.



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