Shares of Prologis (NYSE: PLD) have fallen roughly 30% from their 2022 highs. That's a sizable drawdown that's pushed the dividend yield up to about 2.9%. While the yield has been higher in the past, it's been about middle of the road over the past decade. That suggests that the stock is at least fairly priced today, noting that the dividend has increased at a rapid annualized clip of 11% over the past 10 years. But what about that stock drop? And is the dividend safe?

Prologis' share-price decline is being driven by two broad factors. The first is the rise in interest rates. Real estate investment trusts (REITs) like Prologis are designed to pass income on to investors in the form of dividends. When rates rise other income choices start to look more attractive. For example, investors can probably find lower-risk investments like a certificate of deposit or a money market fund with yields that are higher than Prologis' right now. That puts downward pressure on REIT shares, increasing yields so that they remain competitive with other income options.

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Source Fool.com