Greed can sometimes get the better of you when investing in the stock market. However, when an opportunity to earn $200 monthly comes your way, itâs understandable to get greedy.
Wall Financial (TSX: WFC), a $1.02 billion real estate investment and development company, is flying under the radar. Because the name is not as popular as other stocks in the real estate industry, investors overlook this high-yield dividend stock.
But if you know that it pays 9.94% dividend, and the payout ratio is 66.08%, Wall deserves a second look.
Brief profile
Wall is not a real estate investment trust (REIT), but it operates in a similar manner. The company operates in three segments of the real estate industry — namely, ownership and management of residential and commercial income-producing properties, development and sale of residential housing (or development properties), and ownership and management of hotel properties.
Currently, Wall owns and manages about 1,400 residential and commercial rental units plus 10 commercial units in 13 properties in the Metro Vancouver area. The over 210 units at the Shannon Gate rental property are in the lease-up phase.
In the same area, Wall owns and manages two hotel properties: Sheraton Vancouver Wall Centre Hotel and Westin Wall Centre Vancouver Airport Hotel. The properties under development include the Binning Tower, Eagle Mountain, Mandarin Residences, Shannon Wall Centre Kerrisdale, Strathcona Village, and Wall Centre Central Park.
You might be interested to know too that Wall has been around for 50 years already.
Company performance
Since the name is not familiar, you might think the stock is a non-performer. On the contrary, Wall is performing well in 2019. As of this writing, the stock is up 35.5% year to date.
In terms of business performance, Wallâs revenue for the fiscal year 2019 rose by 52.92%, while net income improved by 342.48% from the prior year. Most notably, EPS grew by 1,235% in just one year, with EBIT margins increasing from 12% to 40%.
Some analysts are saying that the spectacular take off in revenue and net income as well as EPS is indicative of a sound business and quality investment. It was learned that insiders have a meaningful stake in the stock — collectively, they own about 27% of Wall. Prospective investors will delight in that.
Over-the-top earnings
With the impressive financial results in the fiscal year 2019, Wall should be receiving attention. From a dividend standpoint, Wall is simply irresistible. Given the yield that is nearly 10%, your earnings can go through the roof.
If your goal is to earn a monthly passive income of $200, all you need is seed money of $24,200, and youâll have your wish. In case your holding period is 10 years, your capital could be worth $62,427.03 in the future.
As an investment option, you can lean on Wall if it can sustain its exemplary performance. You might just be looking at one of the top real estate stocks in 2020.
