DCT Industrial Trust
4/26 Open: $5.82
Market Cap: $1.4 billion
If you thought REITs in general were boring businesses, get a load of the snoozer that is DCT Industrial Trust (NYSE:DCT). It owns and operates distribution and light industrial properties located around highways in the United States and Mexico.
Collecting rent on truck warehouses is hardly a sexy enterprise, but it certainly is a stable one. DCT pays a reliable 7 cents quarterly, good for a 4.8% yield. Its revenue is locked at $245 million annually, give or take a million bucks. Put it in neutral and let the dividends roll in!
Of course, the company is slightly worse than break-even right now and has been posting small losses since 2009. However, if you believe trucking volume will pick up in the next several months as businesses and consumers get their mojo back, this could be a good recovery play. Shares already are up 13% so far in 2012. And if DCT drifts sideways? Well, the decent yield is a decent payday.
Jeff Reeves is the editor of InvestorPlace.com, and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace??.com or follow him on Twitter via @JeffReevesIP. As of this writing, Jeff Reeves did not own a position in any of the investments named here.