Daily Stock Pick: February 8th, 2022

Stocks were flat this morning after kicking off the week with another roller coaster of a session.  After trading higher early in the day yesterday, the S&P 500 and the Nasdaq reversed course to finish the day 0.4% and 0.6% lower, respectively.  The Dow finished the session with a meager 1 point gain.  

“U.S. stocks will struggle for direction until the latest inflation data tilts the market’s expectations as to how aggressive the Fed will tighten into what is still deemed as an overvalued stock market,” said Oanda’s Ed Moya.  

With the growing potential for a tighter Fed in 2022 than originally expected, many Wall Street pros predict that the drastic sell-off in tech shares will continue in 2022 as the focus could shift further from pricey growth stocks towards tickers that offer value and a reliable payout.  But you don’t have to sacrifice growth for value and stability. 

Today we’re highlighting a real estate investment that should appeal to readers seeking value and growth.  If you’re looking to unlock this powerful combination, look no further.   

 STAG Industrial, Inc. (STAG) is a real estate investment trust focused on acquiring and operating single-tenant, industrial properties throughout the U.S.  Currently, the company owns 517 properties across 40 states with 103.4 million square feet of space.    

STAG is active across all aspects of the industrial real estate market, including owning light manufacturing properties and flex/office space.  Because these properties are essential to their tenants, STAG was able to collect nearly all the rent billed throughout the worst of the pandemic.  Today, flex/office space is a market estimated at more than $1 trillion of properties in the U.S. alone.  With just a 0.5% share of that market, STAG has plenty of room to grow.  

STAG’s portfolio is continually expanding through acquisition.  It will often purchase value-add properties and leverage its substantial leasing and redevelopment experience to increase shareholder value.  Over the next five years, it plans to spend $800 million to $1.2 billion on property purchases.   

Thanks to this acquisition strategy, the company’s payout has been slowly but steadily increasing.  Given the REIT’s aim to invest billions in expanding its portfolio over the next five years, that trend should continue.  The stock sports a comfortable, 3.4% yield paid out monthly, making it even more attractive to income-seeking investors.  STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.  That income with upside makes them a great high-yield REIT to consider adding to your portfolio.