Daily Stock Analysis: Stag Industrial Inc

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Stag Industrial Inc, goes by the ticker symbol STAG and is a mid-cap member of the real estate sector as an industrial real estate investment trust. This is my first ever report on STAG Capital Corp for this Vista folio it has been selected for one of my previous collections.

Stag Industrial Inc is a real estate investment trust primarily involved in the acquisition and operation of single-tenant industrial properties throughout the United States. 

The vast majority of the company's real estate portfolio is comprised of warehouse and distribution buildings. Most of these facilities are located in Midwestern and Eastern U.S. states. 

Stag Industrial derives nearly all of its income in the form of rental income from its portfolio of warehouse and distribution properties. The company generates most of its rental revenue from its facilities located in Midwestern and Eastern U.S. cities. 

Stag Industrial's largest customers include air freight and logistics, automotive, and industrial equipment companies in terms of overall revenue.

By targeting this type of industrial property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.

It is headquartered in Boston, MA.

Three key data points gauge dividend equities or funds like Stag Industrial Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

STAG Price

STAG's price per share closed at $37.88 yesterday. One year ago its price was $29.04. Thus, price per share grew over 30% year over year as it recovered from the Covid doldrums. 

Should STAG's stock trade in the range of $27 to  $42.00 this next year, its recent $37.88 price might rise by $2.62 to reach $40.50 by June 9, 2022. My estimate corresponds with the average annual price increase over the past ten years.

STAG Dividends

Stag Industrial Inc's most recent monthly dividend payout of $0.1208 is payable July 15th and equates to $1.45 annually which will yield 3.83% based on yesterday's $37.88 closing price. STAG has paid monthly dividends increasing annually since 2010 (11 years.)

STAG Returns

Adding the $1.45 annual Stag Industrial Inc forward-looking dividend to my $2.62 price upside estimate shows a $4.07 potential gross gain, per share, to be reduced by any costs to trade the shares.  Say we invest a little under  $1000 in STAG at yesterday's $37.88 per share, we'd buy 26 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.38 per share.

Subtract that maybe $0.38 brokerage cost from my estimated $4.07 gross gain per share results in a net gain of $3.69 X 26 shares = $95.94 for a 9.6% net gain on a $984.88 investment.

So it is that Stag Industrial Inc shows a possible 9.6% net gain including a 3.83% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in STAG would generate $38.30 in cash dividends. And a single share bought at yesterday's closing price was $37.88! So, if STAG is your kind of industrial real estate investment trust, the Stag Industrial Inc share price is about just under the expected annual dividend income from $1,000 invested. This suggests that now is the very time to add Stag Industrial Inc to your stock holdings. Be sure to do so before the price exceeds the dividend income from $1K invested.

All of the estimates above are speculation based on the past history of Stag Industrial Inc. Only time and money invested in this stock will determine its true worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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