“Uncle Sam’s” Landlord Is a High-Dividend Stock Yielding 8.9%

Even with rising interest rates, things are not that great for income investors. Everyone wants to boost the yield of their portfolio, but the choices are rather limited. Blue-chip stocks don’t pay that much, while high-dividend stocks can be a bit risky. Today, though, I would like to talk to you about a high-dividend stock that can actually provide a solid income stream. The company I’m talking about is in the real estate business. To be more specific, it is a real estate investment trust, or REIT. There are plenty of REITs trading in the stock market today, but this one is special because its properties are rented by “Uncle Sam.”

I’m looking at Government Properties Income Trust (NASDAQ:GOV), which happens to be the biggest landlord of the U.S. government. The company owns 71 properties, located in 31 states and Washington D.C., containing approximately 11.0-million square feet. (Source: “About Us,” Government Properties Income Trust, last accessed January 3, 2016.) At first glance, the thing that makes Government Properties Income Trust stand out is its dividend yield. Paying $0.43 per share on a quarter basis, GOV stock has an annual dividend yield of 8.9%. That’s more than four times the average dividend yield of all S&P 500 companies.

Source: Income Investor

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