I recently published an article entitled " The Best Monthly Dividend Stocks" where I evaluated 17 C-corporation stocks that pay dividends monthly. In that previous article I covered the benefits of monthly dividends and provided the reader with a red/yellow/green recommendation on investment potential and a brief rationale for the recommendation on each of the 17 stocks. To provide more granularity on those stocks ranked green in the previous article, I'm covering in more detail the four stocks I consider "The Best of the Best Monthly Dividend Stocks". I previously covered STAG Industrial in the first of this series. This article covers the second stock in the series, Chatham Lodging Trust (NYSE:CLDT).
CLDT is a lodging REIT that invests in Premium-Branded, Upscale Extended Stay, and Select Service hotels. This category of hotels typically have higher profit margins than full service hotels with a higher growth profile due to higher consumer demand. CLDT has a coastal preference with 50% of the portfolio located on the West Coast and 24% in the Northeast. CLDT has the 2nd highest exposure to West Coast markets of all U.S. lodging REITs. In 2015, the company acquired four high-quality hotels in San Diego, Boston, Ft. Lauderdale, and Los Angeles. All strong market growth, multiple demand generators, with high barriers to new supply in each of these markets. At the end of 2015, the company owned 38 hotels with an aggregate of 5,675 rooms and a 10% interest in two joint ventures owning 95 hotels.
The full article on Chatham can be viewed here.
Disclosure: I am/we are long CLDT.