The Safest Dividend Is The One That's Just Been Raised

Unlike most Net Lease REITs, STOR has a truly unique platform that is based on achieving the highest risk adjusted returns.

Summary

  • Unlike most Net Lease REITs, STOR has a truly unique platform that is based on achieving the highest risk adjusted returns.
  • "The difference between your cash assets and cash liabilities is what it cost to create the REIT," Chris Volk, CEO of STORE Capital.
  • "This divergence, between our risk-adjusted rates of return and others, I believe is driven fundamentally by superior relative ROE performance," Chris Volk, CEO of STORE Capital.

I wish I had coined that phrase, but I must give the credit to Josh Peters. I read it in his book, The Ultimate Dividend Playbook.

Today, STORE Capital (STOR) announced a 6.9% dividend boost, an increase of $.08 per share, making the annualized dividend $1.24 per share. On the news, STOR’s CEO, Chris Volk said:

“Our Board is pleased to announce our third annual dividend increase. This 6.9% increase reflects the confidence we have in the foundational strengths of our business and our expected growth trajectory.”

For STOR investors, the dividend increase is great news, as it validates the predictability and the reliability of the Net Lease REIT. I recently wrote a detailed article on STOR and I explained:

“STOR has maintained the quarterly dividend at the $0.29 level for four quarters and I suspect the company will announce another ROBUST dividend bump in Q3-17.”

That was an easy call to make, but the real story on STOR has to do with growth. Unlike most Net Lease REITs, STOR has a truly unique platform that is based on achieving the highest risk adjusted returns.

In order to provide my readers/investors with a better understanding of the platform, I reached out to the CEO (Chris Volk) to explain…

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