WPT REIT Pays Monthly Dividends

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the real estate sector. 

That real estate sector includes nine industries all related to real property ownership. The industries are: general real estate; Real estate services; and seven varieties of real estate investment trusts: diversified, healthcare facilities, hotel & motel, industrial, office, residential, and retail.

Today I'm reviewing a small-cap industrial real estate investment trust or REIT. The trust's name is WPT Industrial Real Estate Investment Trust. Its trading ticker symbol is WPTIF.  

WPT Industrial Real Estate Investment Trust is a real estate investment trust. It owns and operates an institutional-quality portfolio of warehouse and distribution properties located in the United States.

WPT Industrial Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT was formed for the purpose of acquiring and owning primarily industrial investment properties located in the United States, with a particular focus on warehouse and distribution industrial real estate. 

WPT Industrial, LP (the REIT's operating subsidiary) indirectly owns a portfolio of properties consisting of approximately 17.6 million square feet of gross leasable area, comprised of 52 industrial properties and one office property located in 15 states in the United States.

I use three key data points gauge the value of any dividend equity or fund like WPT Industrial Real Estate Investment Trust  (WPTIF): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

WPTIF Price

WPT's price was $13.96 per share at Friday's market close. A year ago its price was $13.27 for a gain of $0.69 per share in the past year.  

Assuming WPT's price will continue to trade in the range of $13.00 to $15.00 next year, its price could grow another $0.70 from $13.96 to $14.66 by June 11, 2019. 

WPTIF Dividends

WPT's most recently declared monthly dividend was $0.0633 per share payable in June. That $0.0633 monthly dividend equates to an estimated annual payout of $0.76 for 2018 which yields 5.4% at Friday's $13.96 closing stock price.  

Gains For WPTIF?

WPT's $0.70 estimated year over year price gain plus an anticipated dividend of  $0.76 makes a projected gross annual gain of $1.46 per share, which will be reduced by the costs to trade those shares.  

A little over $1,000.00 invested today at the $13.96 price buys 72 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.14 per share.

Taking that $0.14 brokerage cost out of the estimated $1.46 gross gain per share leaves a net gain of $1.32 X 72 shares = $95.04 or a 9.5% potential net gain on a $1,005.12 investment.

Therefore, WPT Industrial Real Estate Investment Trust (whose ticker symbol is WPTIF), now shows a possible 9.5% net gain including a 5.4% dividend yield. 

Nine analysts cover this stock:

Two say "buy" WPTIF.

Six say WPTIF will "outperform."

One says "hold" the stock.

The median analyst recommendation is 1.89 or "Outperform" and their median price target is $0.21 over my estimated $0.70 gain.

Y Charts rates WPTIF "neutral" for an overall "Y" rating. Y Charts also shows "Excellent" for a Value score of 10 out of ten points. And YCharts ranks WPTIF "average" with 6 out of 10  possible Fundamental points. Y Charts Historic Valuation score is 105.6% overvalued, based on a $6.79 historic value multiple.

You could look at all those numbers like this: WPT Industrial Real Estate Investment Trust (WPTIF) has made money, is making money, and could net a 9.5% to 12.5% net gain next year including a 5.4% annual dividend yield paid out monthly. It could be more, it could be less. 

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if WPT Industrial Real Estate Investment Trust (WPTIF) is worth your time and money.

Disclosure: Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst mean target price by Thomson/First Call in Yahoo ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.