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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Stag Industrial (STAG - Free Report) is headquartered in Boston, and is in the Finance sector. The stock has seen a price change of 6.34% since the start of the year. The industrial real estate investment trust is paying out a dividend of $0.39 per share at the moment, with a dividend yield of 3.97% compared to the REIT and Equity Trust - Other industry's yield of 4.21% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.55 is up 4% from last year. Over the last 5 years, Stag Industrial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 0.70%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Stag's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.
STAG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $2.64 per share, which represents a year-over-year growth rate of 3.53%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that STAG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Stag Industrial (STAG) Could Be a Great Choice
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Stag Industrial (STAG - Free Report) is headquartered in Boston, and is in the Finance sector. The stock has seen a price change of 6.34% since the start of the year. The industrial real estate investment trust is paying out a dividend of $0.39 per share at the moment, with a dividend yield of 3.97% compared to the REIT and Equity Trust - Other industry's yield of 4.21% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.55 is up 4% from last year. Over the last 5 years, Stag Industrial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 0.70%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Stag's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.
STAG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $2.64 per share, which represents a year-over-year growth rate of 3.53%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that STAG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).