The markets have been rallying to all-time highs on almost a daily basis and thereby lowering the dividend yields and total return prospects of many strong dividend stocks as well. However, as always, there is also a large collection of stocks which are still boasting attractive dividend yields and whose fundamentals are intact or even better than they were before the pandemic struck the world. These stocks have significantly recovered from their peak troughs set in March but are still some distance away from hitting new highs.
Source: Investor Relations
Two of these stocks, STAG Industrial (NYSE:STAG) and W.P. Carey (WPC), have become part of my monthly savings plans, are strong dividend payers, and have been shockingly insulated from the crisis.
Source: Investor Relations
STAG Industrial just posted much better than expected earnings, boasts an attractive dividend and valuation, is primed for further and sustainable growth, and is going green, and thereby also likely to attract more and more ESG-focused investments.
What is going on at STAG Industrial?
STAG Industrial's recent Q4/2020 earnings featured an easy double beat with revenues soaring 16.9% Y/Y and core FFO coming $0.02 above expectations at $0.49. On a Y/Y basis, FFO increased by $0.03 or 6.5% which is remarkable given the intensity and severity of the corona-related situation.
What's even more impressive is how insulated STAG Industrial has turned out to be as the crisis occurred, unfolded and is still raging on. STAG's rent collection numbers have been second-to-none with 2020 rent collections of 99.6%, which is sharply above the already impressive 98.2% figure it posted for Q3/2020 and the 98% collected during Q2. Thus, STAG Industrial has so far mastered the crisis almost unscathed, and there is no reason to believe that this is going to change in the future.
The main reason
