Weekly Stock Recommendation: Starwood Property Trust — 12/06/16
Yesterday, Dividend Hunter recommended stock Starwood Property Trust, Inc. (NYSE:STWD) announced a public secondary offering of common stock shares. When this happens the share price almost always experiences a temporary decline. However, Companies like STWD only sell additional shares into the market if they can use that new capital to grow income and dividend paying ability. As well informed income stock investors, we like to take these opportunities to buy shares of quality companies at a bit of a discount.
Recommendation: Buy or Add shares of STWD up to $22.85 to earn an 8.4% yield.
Last reviewed in the July 2016 issue, click HERE.
Weekly Stock Recommendation: MGM Growth Properties LLC — 11/22/16
With stock prices rising, it’s getting tougher to find good values. One that has not yet participated in the rise is MGM Growth Properties LLC (NYSE:MGP). This company is an exceedingly financially secure REIT and although it has been just nine months since the MGP IPO, the prospects for dividend growth look positive. The dividend was increased from the prospectus rate after the first full quarter of operations.
With a current 6.2% yield, MGP provides attractive value compared to REITs with similar financial stability and growth prospects. These reasons make it easy for me to recommend MGM Growth Properties as this week’s Dividend Hunter stock to buy.
Recommendation: Buy or add MGP shares as long as the yield is near 6.2%.
Last reviewed in the July 2016 issue, click HERE.
Weekly Stock Recommendation: Communications Sales & Leasing Inc. — 11/15/16
Dividend Hunter recommended stock Communications Sales & Leasing Inc. (NASDAQ:CSAL) released its 2016 third quarter earnings results on November 14. I read the earnings press release and listened in on management’s conference call, and from all of the available information, CSAL’s business looks to be doing fine. The company is making accretive acquisitions. It is expanding by buying very profitable assets in Latin America –Mexico and Columbia– and the dividend is will covered by adjusted FFO per share.
The CSAL share price is now around $26 compared to $32 in late September. Nothing has changed for the company and it has a very attractive long-term growth story. The current share price puts the yield around 10%.
Recommendation: Buy or add shares of CSAL under $27.50
Last reviewed in the June 2016 issue, click HERE.
Lastly, don’t forget to check out the stock featured in this month’s issue of The Dividend Hunter: Plains GP Holdings LP (NYSE:PAGP). Plains GP came about in a late 2013 IPO to provide investors access to the general partner interest of Plains All American Pipeline, LP (NYSE:PAA). This lets you take advantage of the high yield and growing dividend of PAA while avoiding complicated tax filings from holding the actual MLP.
PAGP currently yields 6.4%. Click here for the full research in the December issue.