Is STOR Stock the Best REIT for Income Investors?
One of the challenges for income investors today is that,
because of the huge market rally over the past year, most stocks have gotten
more expensive, which means their yields are lower than before.
We can’t go back in time and buy stocks when they were
cheaper, but we can find exceptions in the current market. While the broad
indices were able to quickly shrug off the COVID-19-induced sell-off and soar
to new heights, there are actually solid companies today trading at prices that
are below their pre-pandemic levels.
Check out STORE Capital Corp (NYSE:STOR), for instance.
STORE Capital is a real estate investment trust (REIT)
headquartered in Scottsdale, AZ. The company’s name stands for Single Tenant
Operational Real Estate, which is the company’s target market. As of March 31,
the REIT’s portfolio had investments in 2,656 properties located across 49
states.
Other than being diversified geographically, STORE Capital’s
portfolio is diversified across industries. In particular, those 2,656
properties are leased to 522 tenants from 117 different industries. As a
result, even if one industry or region enters a downturn, the impact on the
REIT’s company-level financials will likely be limited.
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