Cheap Dividend Stocks #3: Inland Real Estate (IRC)
Share Price as of 4/4: $10.67
YTD Stock Performance: 1%
Dividend Yield: 5.5%
Inland Real Estate (IRC) is a real estate investment trust, which means it’s required to pay out 90% of its earnings as dividends in return for certain tax breaks. (That’s why REITs carry such high dividend yields.)
Also, IRC is the only name in this group of dividend stocks that’s above $10 as of this writing … but I wouldn’t hold that against Inland.
As InvestorPlace editor Jeff Reeves said at the beginning of 2014, IRC’s big-name tenants translate into rock-solid stability and the company thus boasts a 95% occupancy rate. That bodes well for the income part of this equity-income name.
IRC stock is barely above breakeven for the year-to-date, but at least it has fairly low volatility. With a beta 0f 0.85, it’s significantly less volatile than the broader market. Throw in the healthy 5.5% yield on the dividend — which is paid monthly — and you can sleep well at night with IRC stock.
It also pays to be a little patient with Inland while waiting for price appreciation. Like the broader market, IRC stock was bound to cool off after such a strong run in 2013.