Earn a 5.2% Yield From Dollar General Using This Hack
Dollar General (NYSE:DG) is one of the largest discount retailers in North America with nearly 20,000 stores. Its stock has provided sizable returns for early investors, but it's not an intriguing option for dividend and income investors as it yields just 1.5% at the time of this writing.
But, did you know there's a hack you could use to earn a 5.2% yield from Dollar General? The hack is investing in one of its largest landlords.
Here’s how.
Agree Realty Corporation
Agree Realty Corporation (NYSE:ADC) owns and manages a portfolio of more than 2,100 properties across 49 states containing approximately 44 million square feet of gross leasable space. It counts world-class retailers such as Dollar General, Home Depot, Lowe's, Walmart, McDonald's, Starbucks, CVS, Walmart, ULTA, Target, and Costco as tenants.
Don't Miss:
Investing in real estate just got a whole lot simpler. This Dara Khosrowshahi-backed startup will allow you to become a landlord in just 10 minutes, and you only need $100.
Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000.
Agree Realty lists Dollar General as its third largest tennant in its most recent investor presentation, equating to approximately 4.8% of its annualized base rent.
So, by owning Agree Realty, you can generate monthly income that is partially attributable to Dollar General.
Agree Realty currently pays a monthly dividend of $0.247 per share, equating to an annualized dividend of $2.964 per share and giving its stock a yield of about 5.2% at the time of this writing.
In addition to being a high yielder, Agree Realty is a dividend grower. It has raised its annual dividend payment for 11 consecutive years, and it's on pace for 2024 to mark the 12th consecutive year with an increase.
Read Next:
Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. A platform backed by industry giant Marcus & Millichap is changing that, allowing individuals to invest in commercial real estate with as little as $5,000.
Collecting passive income from real estate just got a whole lot simpler. A new real estate fund backed by Dara Khosrowshahi gives you instant access to a diversified portfolio of rental properties, and you only need $100 to get started.
Image Credit: Shutterstock
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga?
This article Earn a 5.2% Yield From Dollar General Using This Hack originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
