Earn a 5.8% Yield from FedEx Using This Hack
FedEx (NYSE:FDX) has created generational wealth for early investors following its 1978 initial public offering, but the high-growth days for the stock are in the rearview mirror. It also does not have a dividend yield that justifies owning it as a high-yield or income play, as its yield sits at just 2% at the time of this writing.
However, there’s a hack you can use to earn a 5.8% dividend yield from FedEx, and that’s by investing in one of its largest landlords.
Here's how.
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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.
Realty Income Corporation
Realty Income Corporation (NYSE:O) is the 7th largest global REIT with over 13,250 commercial properties in its portfolio and a world-class tenant base that includes FedEx, as well as Walgreens, Dollar General, 7-Eleven, LA Fitness, CVS, Walmart, and Tractor Supply.
FedEx is listed as the seventh-largest client of Realty Income in its most recent investor presentation, equating to 2.2% of its annualized contractual rent.
So, by owning Realty Income, you can generate monthly income that is partially attributable to FedEx.
Realty Income currently pays a monthly dividend of $0.2565, equating to an annual dividend of $3.078 per share and giving it a yield of about 5.8% today.
In addition to being a high-yielding monthly income stock, Realty Income is a dividend-growth superstar. It has raised its annual dividend every year since 1994, putting it on pace for 2024 to mark the 30th consecutive year in which it has raised its dividend for investors.
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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.
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This article Earn a 5.8% Yield from FedEx Using This Hack originally appeared on Benzinga.com
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