Government Properties Income Trust (GOV)
Dividend Yield: 6.9%
You have to be living under a rock not to know that the government makes for a great customer. It not only is a great source of recurring revenue, but once you land a contract with it, you can bet you’ll get paid on time and will probably be overpaid as well.
Government Properties Income Trust (GOV) is a real estate investment trust that actually leases real estate to the government. It owns about 82 properties in 31 states and the District of Columbia, and the government makes for a very good tenant. The fact that the government is good for the rent may be one reason why this dividend stock is able to secure huge amounts of unsecured financing at extremely low rates (Libor plus 150bps).
GOV has produced a total return of 30% over the past two years and paid out a yield hovering around 7% annually (6.9% at the moment). Meanwhile, while the dividend hasn’t screamed higher, it has improved, from 40 cents in 2010 to 43 cents currently.