LaSalle Hotel Properties (LHO)
Dividend Yield: 6.3%
Did you know that in 2016, the U.S. added 400,000 millionaires, lifting America’s seven-digit class to 10.8 million strong – so while the middle class might be evaporating, the upper class is expanding, and fast.
LaSalle owns 42 upscale hotels and resorts across seven states and Washington, D.C., though it’s a little different in that rather than simply acquiring existing luxury properties, it also redevelops and repurposes some. The portfolio includes hotels such as the Grafton on Sunset in Los Angeles, Chaminade Resort & Spa in Santa Cruz and the Kimpton Onyx in Boston.
What’s particularly attractive about LaSalle is how well-covered the dividend is. LHO yields more than 6% on quarterly dividends of roughly 45 cents per share, and it doled out $1.80 per share in 2016 … against adjusted funds from operation of $2.90 per share. That’s a mere 62% AFFO payout ratio, which means that dividend is about as safe as they come.
LaSalle Hotel Properties (LHO) Is an Upper Crust REIT