This 3%-Yielding Real Estate Stock Just Raised Its Dividend Again. Is It a Buy Before Its Next Raise?
Terreno Realty (NYSE: TRNO) flies under the radar of most investors. The industrial-focused real estate investment trust (REIT) is tiny compared to industry behemoth Prologis (NYSE: PLD). It owns 292 buildings in six U.S. markets compared to over 5,500 properties worldwide for the sector leader.
Because of its smaller size, many investors might have missed that the industrial REIT just increased its dividend again. That raise pushed its dividend yield closer to 3%, more than double the S&P 500's sub-1.5% yield and around Prologis' payout level. With more dividend growth likely, it looks like a great REIT to buy for those seeking an attractive and rapidly rising income stream.
Terreno Realty recently declared its latest dividend payment. The REIT bumped up its quarterly rate to $0.49 per share, an 8.9% increase from the prior level. That has continued the brisk growth in the REIT's dividend over the years. Since initiating a dividend in 2011, Terreno has grown its payout at a 12.7% compound annual rate. That's roughly in line with the dividend growth rate of sector leader Prologis, which has grown its payment at a 13% compound annual rate over the past five years.
Source Fool.com
