After all, it owns retail stores, and don’t retailers need Chinese supply chains to keep the registers ringing?
It barely missed a beat in the last crash, inching down just 1.6% (including dividends), from the start of the pullback in September 2018 to its trough on December 24, 2018.Here’s something few people realize: even though Essex is an apartment REIT, it dials you straight into the tech sector’s US epicenters, because it rents to the brainpower that makes Google, Facebook and Amazon run. So I employ a contrarian approach to locate high payouts that are available thanks to some sort of broader misjudgment. Three of the biggest names in the space—mall landlord Now let’s dive into three other top-notch US REITs with soaring payouts. In particular, Sunoco is the official fuel of NASCAR and INDYCAR, and it distributes gasoline to more than 500 racetracks around the globe.To income investors, Sunoco stock is one of the most generous dividend payers in today’s market. Essex also boasts a safe payout ratio of 57% of core per-share funds from operations (FFO, a better measure of REIT profitability than net income), a 97% occupancy rate and rising per-share FFO (up 8.2% in the fourth quarter).Thanks to those strengths, I expect today’s Essex buyers to be bagging a yield just as high 10 years from now.Alexandria is yet another “undercover” tech play. (Source: “The neat thing about being a motor fuel distributor is that, unlike volatile oil prices, the margins on wholesale motor fuel tend to remain strong and stable throughout the commodity cycle. The current dividend yield for Sunoco … These aren’t token hikes, either!As with NNN, buying in 2010 would have paid off nicely, in the form of a 9.1% yield today.
High dividend yields (usually over 10%) should be considered extremely risky, while low dividend yields (1% or less) are simply not very beneficial to long-term investors. In 2019, it joined the Dividend Aristocrats—a club that’s raised its payouts for at least 25 straight years. If you’d bought NNN a decade ago, that strong dividend growth would have you yielding 9.7% on your original buy today (because you calculate your Essex is another REIT you want to hold when markets panic. It has more than 71,000 miles of oil and gas pipelines along with storage and other facilities in 38 states. All rights reserved. Find the latest dividend history for Sunoco LP Common Units representing limited partner interests (SUN) at Nasdaq.com. Check out where its 245 buildings are located:And don’t let Essex’s 2.5% yield deter you. You can see REITs’ resilience in action in the late-2018 market crash. Adding in the fact that the demand for gasoline and diesel remains robust in America, Sunoco LP is well positioned to generate a steady stream of cash flow. At the end of the day, you can find companies with even higher payouts than Sunoco LP.
The best part is, it's a double-digit yield that investors can actually count on. More from Intelligent Income. Energy Transfer Partners (NYSE: ETP) recently merged with Sunoco Logistics Partners. Review SUN dividend yield and history, to decide if SUN is the best investment for you. Renowned billionaire investor Howard Marks called this “second-level thinking.” It’s looking past the consensus belief about an investment to map out a range of probabilities to locate value. In the world of double-digit yielders, it’s not every day that you find a company that can earn 32% more cash than what’s needed to cover its payout. (Source: “For the first quarter of 2019, Sunoco LP generated $99.0 million in distributable cash flow while paying total cash distributions of $86.0 million. Today, it’s almost impossible to find good stocks that pay a quality yield. That translated to a distribution coverage ratio of 1.15 times. (Source: Ibid. But when it comes to dividend safety, does size matter? It starts handing you its 6.5% dividend—paid monthly—shortly after you buy.National Retail Properties might not seem like the best shield against international mayhem. (Source: “The reason why SUN stock can deliver increasing cash distributions in a volatile commodity price environment lies in the nature of its business.
Sunoco LP (SUN) Dividend Safety metrics. Sure, they fell along with stocks, but only about half as far.And even though they didn’t fall to the same depths, REITs Many REITs did much better.
As a matter of fact, the partnership distributes more than 10 fuel brands, including well-known names such as “Shell,” “Exxon,” “Phillips 66,” and “Chevron.”Just take a look at the financials and you’ll see why this motor fuel distributor is special.Last year, the partnership generated $455.0 million in distributable cash flow, resulting in a distribution coverage ratio of 1.32 times.