Buy This High-Quality 5.3%-Yielding REIT On The Drop

Commercial property REITs have dropped in line with the broader market, creating a buying opportunity for income investors seeking recurring dividend income. I recommend this company to income investors seeking recurring dividend income. The REIT has a low AFFO payout ratio, high-quality cash flow and has grown its dividend at a fast clip in recent years. Shares are reasonably valued on an AFFO basis. An investment in the stock yields 5.3 percent.

STORE Capital Corp. (STOR) is a promising REIT to consider for a high-quality DGI portfolio, in my opinion. STORE Capital has produced above-average dividend growth in recent years, and the company easily covers its dividend payout with cash flow. Shares are reasonably priced after the sell-off last week. An investment in STORE Capital yields 5.3 percent. With stocks falling the most in almost two years last week, investors can now pick a bunch of attractively-priced income vehicles out of the bargain bin. In my opinion, the sell-off is a golden opportunity to double down on high-quality REITs with sustainable dividends. And this is where STORE Capital comes into the play. The REIT makes for an attractive income play because investors pay quite a bit less for STORE Capital's dividend stream compared to just three months ago.

Source: Seeking Alpha

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