DGI For The DIY

[divmenow]

(10-10-2017, 10:04 PM)EricL Wrote:

(10-09-2017, 09:51 AM)divmenow Wrote: Eric why Stag? I don't know the name but its got me curious since it pays a dividend each month. Wont raising interest rates hurt this kind of company when they raise at the Dec Meeting?  PE looks ok at 16 and 15 for next year.

BTW my 5 dividend growth picks are ABT, HON, ITW, MA and BDX

I think STAG is a well-run, fairly conservative REIT that offers a decent yield of around 5%. I think it can grow FFO in the 5-8% range, and while the dividend growth has been slow the last couple of years while they worked the payout ratio down, it too should eventually start growing at a 5%+ clip again once that is complete.

Brad Thomas on Seeking Alpha initially got me interested in it, and it has been a good performer for me. He remains bullish on its prospects...of course there aren't many REITs he doesn't like!

I'm not too concerned about a 0.25% raise on STAG. Even with the increase, rates are historically low. It would take several more before I'd start getting overly concerned, but it is something worth keeping an eye.

A counterpoint is the fact that if the Fed keeps raising rates, that means that inflation is happening and the economy is doing well, which helps STAG.

I like your picks too. I own ABT and BDX, and wouldn't mind picking up the others some time down the road as well.

Thanks Eric Makes sense. I have STAG on my watch list and will look to add on any weakness.