Earn a 5.9% Yield from BJ's Wholesale Using This Hack
BJ's Wholesale Club Holdings (NYSE:BJ) has posted a very strong performance since its 2018 initial public offering at $17 per share, returning more than 300% and sitting around $68.79 at the time of this writing.
While its return has been impressive, it's off-limits for dividend and income investors as BJ's Wholesale does not pay a dividend.
However, there's a hack you can use to earn a 5.9% dividend yield, and that's by investing in one of its largest landlords.
Let's dig in.
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 Walgreens, Dollar General, 7-Eleven, FedEx, LA Fitness, CVS, Walmart, and Tractor Supply.
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BJ's Wholesale is listed as the 12th largest client of Realty Income in its most recent investor presentation, equating to 1.6% of its annualized contractual rent.
So, by owning Realty Income, you can generate monthly income that is partially attributable to BJ's Wholesale.
Realty Income currently pays a monthly dividend of $0.2565, equating to an annualized dividend of $3.08 per share and giving it a yield of about 5.9% at the time of this writing.
On top of its high yield, Realty Income is one of the top dividend-growth stocks in the market. It has raised its annual dividend every year since 1994, putting it on track for 2024 to mark the 30th consecutive year in which it has done so.
Investors should consider Realty Income one of the best income opportunities in the stock market today.
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