$8 Stock with Healthy Dividend
Today I want to share another potentially great dividend paying stock that has upside potential while it continues to move through it’s recovery phase.
The stock is around $8 and has around an 8.5% dividend.
I hope this post finds you well.
Many in the community have been asking me for stock ideas. So I’m happy to share one of the stocks that I believe has good upside potential and a healthy dividend.
As you know I am a big believer in dividend paying stocks and feel they are easier to monitor and extract value from vs trying to catch the next big stock. Though you should have some value stocks and some dividend stocks in your portfolio.
Of course you will need to do your own research before placing any money. This video is educational only and not an offer to buy stocks as I am not a stock broker.
My professional licensing for retirement planning lies in the insurance world and my best selling book Taming Wall Street (click book title to get FREE digital copy) gives excellent ideas on how to safely grow your money tax free without all the risks associated with Wall Street.
But let’s jump into today’s stock idea.
Preferred Apartments Community or APTS as its known on the New York Stock Exchange is based out of Atlanta Georgia and has been in business since 2009.
Preferred Apartment Communities, Inc. (NYSE: APTS) is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers, Class A office buildings, and student housing properties.
Preferred Apartment Communities' investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating real estate loans for multifamily properties. As of September 30, 2020, the Company owned or was invested in 125 properties in 15 states, predominantly in the Southeast region of the United States.
A stock research firm by the name of Market Beat has them listed at the #96 Real Estate Investment Trust stock out of 276 real estate investment stocks they track.
If you blend 20 analysts detailed findings of Preferred Apartments Communities you’ll learn most have this opportunity pegged as a stock to hold because of its stable earnings and upside potential. 0% say to sell this stock at this time.
It carries a lot of upside potential and pays a generous dividend of around 8.5% annual.
This means if you have $100,000 in Preferred Apartments communities it would pay you $8500 in annual dividend payment.
Market beat says their analysts believe it could go back to just over $9 a share based on current market conditions.
Before the pandemic APTS was trading for around $12.37 and had a 10% dividend.
I’m going to share an image of their dividend of the past 10 quarters to give you an idea of its performance. Overall it has had an increase in dividends paid out.
Like other stocks, Preferred Apartments took a hit with the closing of the economy. It’s now considered a recovery stock meaning it took a drop but now has lots of upside potential as it makes a come back.
Preferred Apartments has a market capitalization of $414 million and generates $470 million in revenue each year. As the economy re-opens this should be a fairly stable stock because people need a place to live.
This stock still has some recovery upside potential but like all dividend stocks my thinking is if the stock never went up or down over time, what could I earn on my money.
Right now Preferred Apartments is trading for around $8.15 with a former purchase price of $12.37 and analysts saying it could go to just over $9 as I mentioned before.
Now it’s important to do your research because many well known analysts are saying we could see good growth over the next 12 months, while other famous ananlysts are saying we could see the stock market drop by 40-60%.
However, for all these reasons above, I think Preferred Apartments Communities could be a good dividend paying stock to have in your diversified portfolio.
And I am a big fan of dividend paying stocks. In my own portfolio more than 50% of my holdings pay a dividend of 4-9%.
With real estate prices being at all time high’s, many will choose to rent for the forseeable future. As the economy stabilizes and money from the next stimulus carrying $25 billion in rental assistance, this stock has good upside potential.
So maybe Preferred Apartments should be one of the stocks you research on your own. I’m not here to tell you do buy or sell, just about the opportunity, the dividend and the upside potential.
I hope you found this post helpful.