29 Feb 29 2016: Bought 100 shares of STAG at $17.70 per share.
Founded on July 21, 2010 and based in Boston, Massachusetts, 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.
STAG is a Dividend Challenger, having paid and raised dividends for 6 consecutive years. The company pays monthly dividends of 11.5833¢ per share. At my buy price, the stock yields 7.85%.
I already own shares of STAG. I first bought shares of STAG in July 2015 at $18.94 per share and at an initial yield on cost (YoC) of 7.29%. Those shares now have a YoC of 7.34%.
With this buy, I'm adding $139 to DivGro's projected annual dividend income, which now totals $8,651.11. One of my goals for 2016 is to increase projected annual dividend income to $12,000.
I usually buy shares in amounts of $2,500 at a time. Here I'm only spending $1,770, which is $730 less that the usual amount. The reason is that I hold my STAG shares in an IRA account and I didn't have enough cash for a full position. (I can't add more cash in 2016, either, because I maxed out my 2016 contributions). When my holdings in this IRA account have paid enough dividends, I'll look for a good opportunity to buy more STAG shares worth about $730.
The following chart shows STAG's recent price history along with my buy prices. By dollar-cost averaging down, I'm reducing my cost basis to $18.42. Average YoC is 7.54%.
I like STAG for its impressive yield and sound fundamentals. I also like the fact that STAG is a monthly dividend payer, which means dividend income can be reinvested faster! STAG is highly diversified along several dimensions, including geography, tenant, and industry:
Source: STAG Industrial Inc
One reason I like STAG is that it now pays monthly dividends. The company switched to monthly dividend payments in November 2013:
Here are updated ratings for STAG:
Thanks for reading! What do you think of this buy? Do you own shares of STAG or are you considering buying shares?