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It’s pretty clear why a clear path toward passive income has become a popular topic of conversation lately. With a potential market downturn in our midst, investors want a way to guarantee income even when the markets fall, as they did between October and December.
While that passive income can be great, you still want your shares to perform well — and ideally outperform. Larger companies can see some steady growth over a long period, but there are smaller ones that can still provide solid growth, and perhaps even faster.
But when you’re looking at these stocks, it’s important to choose wisely, which is why a real estate investment trust is such a great option. These stocks provide stable growth in both share price and dividend yield that should make investors very happy.
But if you’re looking one that stands out from the rest when it comes to greater growth in the shortest time, I’d look at WPT Industrial REIT (TSX:WIR.U).
WPT Industrial has focused on one sub-industry that could be in for some major growth over the next few years. The stock is young, but that means that there is an enormous opportunity for both share and dividend growth.
The company already has as number of quality assets under its belt, and has chosen an industry that sees growing demand for more industrial properties. That number of assets continues to grow, with the company already owning 70 light industrial properties in the United States, and has an incredibly impressive occupancy rate of 99.1%.
In its latest quarter, the company reported strong results with net operating income increasing 3.4% year over year to $24 million. Rents and management fees increased from the acquisition of four properties in the last year, which should give the company a major boost throughout the next year.
Once those acquisitions and rental adjustment add to the company’s profitability, investors should expect its share price of $13.65 to increase substantially. Analysts already believe the company’s stock fairly valued, so future growth seems very likely.
As more industrial properties are added to the company’s portfolio, this growth should skyrocket. Given the demand for light industrial properties that e-commerce providers require, WPT Industrial should have a solid few years ahead of them. Essentially, as online sales continue to grow, so will a company like WPT Industrial.
Now for that dividend
Although WPT Industrial is a fairly new company, the dividend is already quite strong at 5.58% at the time of writing. As the company expands and the share price increases, shareholders should benefit from a substantial jump in this dividend yield.
If an investor were to buy today, in order to receive that $200 cheque from WPT Industrial every month, they would need to make an investment of about $43,365. What you do with that $200 is up to you, but it definitely goes a long way toward everyday living, especially during times of market uncertainty.
Then again, you may just want to reinvest that $200 right back into this stock that, frankly, is likely in for some major growth over the next decade.
Just one ticking time bomb in your portfolio can set you back months – or years – when it comes to achieving your financial goals. There’s almost nothing worse than watching your hard-earned nest egg dwindle!
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Stock #1 is a household name – a one-time TSX blue chip that too many investors have left sitting idly in their accounts, hoping the company’s prospects will improve (especially after one more government bailout).
Still, our analysts rate this company a firm SELL.
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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned.