Acquisition STAG

stag-industrial-company-logoAnother worth mention comes to its time as I gladly snapped up some shares of STAG Industrial, Inc. (STAG) into my portfolio. This REIT is a fairly newer company, but it is definitely making the right moves as it just has been on fire these last few years, as the company more than quadrupled its revenues from 2011 to 2015. The stock itself has been somewhat volatile in past three years, but without a doubt the company is making a ton of money and I would like some of it too. The company stouts a great looking dividend yield and what I really like about this company is that it is slowly, but surely becoming a nice dividend payer by growing and distributing its profits to shareholders on a consistent basis.

Company Overview: STAG Industrial was founded in 2010 and is headquartered in Boston, Massachusetts. Basically, the company is a Real Estate Investment Trust that invests and manages real estate assets in the United States. It primarily focuses on acquiring and operating of single-tenant industrial properties. Currently, it manages around 228 buildings totaling approximately 46 million rentable square feet.

  • Dividend Yield: 6.2%
  • 5Yr Dividend Growth Rate: 5.4%
  • Payout Ratio: 89.7%
  • P/E: 15.8
  • Consecutive Years of Dividend Raises: 5
  • Dividend Payout: Monthly

I purchased 45 shares for the price of $22.33 adding $62.53 to my annual dividend income.

This is the 7th time I am initiating a stock acquisition this year. This transaction is my first ever purchase of STAG shares into the portfolio. Currently, STAG ownership stake represents to be around 1.2% of my current portfolio value. Also, the acquisition of STAG makes it the 37th company I am invested in.

The 12-month dividend income increased to $2,680.

Thank you for reading & have a great day!

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6 Comments

  1. DivHut on October 23, 2016 at 19:31

    I like STAG for its yield and business model. I have that name on my watch list along with other REITs for a potential buy. Nice pick up and boost to your passive income stream.

    • DividendVet on October 23, 2016 at 19:38

      Thanks, STAG has been on my watch list for a while as well, so I was glad to finally pick up some shares. Just putting some money to work, so in the future I don’t have to. 🙂

  2. Doug Arnold on October 23, 2016 at 21:12

    I’ve been looking at it. Seems like a good stock. So many choices lol

    • DividendVet on October 24, 2016 at 19:28

      It is definitely a promising REIT, we will se how good it becomes in the future.

  3. Dividend Kid on October 24, 2016 at 18:01

    Looks like a good buy here but that payout ratio and lack of dividend raise history scares me a bit. Lots of current income though!

    • DividendVet on October 24, 2016 at 19:32

      Thanks, but REITs by law have to pay out at least 90% of the revenues to the shareholders to qualify to be a REIT on the US Stock Exchange. Might want to read this: https://www.sec.gov/answers/reits.htm

      Dividend history could be better, but you would pay much more of a premium.

      Take care.

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