Best Stocks to Buy for Around $5: Gramercy Property Trust (GPT)
Gramercy Property Trust (GPT) is a real estate investment trust that manages mainly industrial and office properties across the U.S. As of last year, GPT controlled more than 110 buildings with about 4.2 million square feet of office space and 1.5 million square feet of industrial space.
Right now, GPT is struggling to break even on the heels of five new property acquisitions in 2013. However, in March, GPT paid its first dividend since 2007, so things are looking up.
Compared with other REITs, the roughly 3% yield isn’t amazing … and besides, you have to annualize the 4-cent payout and trust it’s going to be there in the coming quarters. Also, shares are down about 7% so far in 2014 despite the reinstated payouts.
However, a recovery in the broader U.S. economy could lift demand for business real estate and result in bigger revenue and profit for GPT.
If you’re looking for a cyclical way to play the recovery and want to get in on a good long-term dividend investment, Gramercy Property might be among the best stocks to buy right now.
GPT stock is down about 80% from its 2007 peak, and its dividends remain a fraction of past payouts.
Still, even if Gramercy only gets part of the way back to where it was several years ago, investors will be rewarded handsomely.
Jeff Reeves is the editor of InvestorPlace.com and the author of The Frugal Investor’s Guide to Finding Great Stocks. As of this writing, he did not hold a position in any of the aforementioned securities. Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP.