Buy Income And Growth With This “Dead” Industry

Store Capital raised the dividend yield by 14% over the last two years. It doesn’t own malls, but rather is a “triple net lease” developer of single-tenant properties.

Seritage was created by Sears’ owner Eddie Lampert as an entity to redevelop mall properties in which the struggling retailer was the main anchor tenant. Buffett bought his stake around $35 in 2015.

That news shot Seritage shares up into the mid-$50s at the time. But two years later, the “dead mall” meme succeeded in pummeling the security down 27% to $41 a share.

Seritage pays a dividend of only $0.25 a share — which it has yet to raise since its initial public offering (IPO) in 2015 — but that still represents a yield of 2.4% for investors buying today.

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