Three Top-Performing, High-Income-Generating Stocks Ideal for Purchase at Present for Passive Earnings
In the world of real estate investment trusts (REITs), three names have been consistently standing out for their high-yield, steadily growing monthly dividends: Realty Income, Main Street Capital, and Stag Industrial.
Stag Industrial, a REIT focused on owning industrial real estate secured by long-term leases, has been making significant investments to expand its portfolio. Each year, the company invests several hundred million dollars, with a primary focus on value-add investment opportunities. These investments, typically earning higher returns than stabilized property acquisitions, have proven to be a successful strategy for Stag Industrial.
One of the key aspects of Stag Industrial's business model is its long-term leases, which escalate rents at a low-single-digit annual rate, currently around 2.9%. What's more, as legacy contracts expire, Stag Industrial often signs new leases at even higher rates, as evidenced by a 24% average rental increase expected in 2024.
Main Street Capital, another prominent player in the REIT sector, primarily invests in lower-middle-market companies (with annual revenues between $10 million and $150 million) and loans to middle-market companies (over $150 million in revenue). The company follows a two-part dividend policy, distributing at least 90% of its taxable income to investors via dividends. Over the past quarter, Main Street Capital paid $1.065 per share in dividends, resulting in a 6.6% annualized yield at its current share price.
Debt investments by Main Street Capital tend to generate high income yields in the low double digits.
The main shareholders of these three REITs typically include institutional investors such as Vanguard Group, BlackRock, and various mutual funds, who are the largest stakeholders in these companies. This institutional backing underscores the confidence these investors have in the long-term potential of these REITs.
Realty Income, while not specifically mentioned in the provided bullet points, is a REIT that shares similar characteristics with Main Street Capital and Stag Industrial. It is known for its high-yield, steadily growing monthly dividends backed by strong financials, making it a standout choice for anyone seeking consistently rising passive income.
In conclusion, Realty Income, Main Street Capital, and Stag Industrial are three REITs that have proven their worth in the market. With their high-yield, steadily growing dividends, these companies offer attractive investment opportunities for those seeking passive income with strong financial backing.
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