High-Yield REIT Stock Yields 6.7%, Low AFFO Payout Ratio And Valuation, Dividend Upside

This REIT has paid a dividend for 23 years, making it a preferred income vehicle for investors valuing dividend sustainability. Strong portfolio and dividend coverage metrics imply a good margin of dividend safety. Shares are far from being overpriced, selling for less than eleven times 2017e AFFO. An investment in the company yields 6.7 percent.

Lexington Realty Trust (LXP) is a promising REIT to buy for a DGI portfolio. Lexington Realty Trust has solid portfolio and dividend coverage stats, including a low AFFO payout ratio, tilting the odds in favor of continued dividend growth. The REIT's shares are reasonably valued, selling for a low 2017 AFFO multiple. An investment in Lexington Realty Trust yields 6.7 percent.

Source: Seeking Alpha

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