Where to Keep Stuff

Companies that make stuff need a place to store product until it is shipped to the customer. Companies like Amazon need huge spaces scattered throughout the country to accomplish their delivery promises. Groceries need to be stored in warehouses, as do furniture items, household goods and even safety products. When I worked for Conney Safety Products and at Parts Now in the Madison Wisconsin area, both businesses had warehouses. You would be amazed at just the number of products related to personal protection. Sometimes a business doesn’t want to own the storage space, so they depend on a company that specializes in that type of real estate. One such company is “STAG Industrial, Inc.”

What is STAG?

STAG is a powerful REIT for monthly income

“STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.” – From Seeking Alpha

Follow the Wise Businesses

Amazon certainly tries to do as much as they can without having to pay someone else to do it. For example, they even have their own trucks to deliver to residential areas. I can expect a package from Amazon to come via the USPS, UPS or from an Amazon-branded truck. I know where the Amazon-branded truck mini-warehouse is located because we stumbled on it while looking for kitchen tile. Amazon uses other providers for some of their other services. One such service is STAG.

A warehouse not far from where we live.
Source: Stag Investor Presentation, Fall 2020

Is STAG a Safe Investment?

Nothing in life is guaranteed. But there are things to like about STAG. The things I notice include: 1) Their business is growing, 2) the attract customers like Amazon, Ford, and the US Government, 3) they have geographic reach, 4) they have a lot of buildings, 5) they pay a monthly dividend that is consistent even though it isn’t growing and 6) their REITRATING™ score is a very solid 8.1. For STAG, their AFFO & Efficiency Section at REITRATING™ shows that they can afford to pay their dividend with their funds from operations. The email I received from Seeking Alpha this morning reminded me of the growth of their business.

More properties means more customers. This means more cash flow.

Not for Dividend Growth

STAG is one of the investments I hold not for dividend growth and not necessarily for growth in the price of the shares. Rather, the simple math is that STAG pays me $96.00 every month. That more than covers the US Cellular wireless phone bill for Cindie’s iPhone and mine. We can buy about $30.00 of groceries every month with the remainder of the monthly dividend.

STAG is best for monthly income, not for share price appreciation or for dividend growth.

Full Disclosure

I own 800 shares of STAG as a long-term investment for monthly income.

LINK: https://www.stagindustrial.com/