This REIT Has Outperformed The S&P, Up 67% In The Past Year And Pays A 4.2% Dividend Yield
"Collect Rent Checks From The Mailman"
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly on the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.
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Current Price: $24.64
Dividend: $0.245
Persistent inflation continues to reshape the investment landscape. After recently accelerating back to 4.2%, inflation remains one of the biggest challenges for income investors.
While plenty of dividend stocks offer yields capable of outpacing inflation, chasing the highest yield isn’t always the best strategy. Reliability matters just as much as income.
That’s one reason I’ve long appreciated Postal Realty Trust (PSTL). Few REITs possess a tenant as dependable as the United States Postal Service, whose operations are backed by the full faith and credit of the U.S. government.
Delivering mail to more than 170 million Americans six days a week creates one of the most defensive real estate portfolios available.
The problem today isn’t the business—it’s the valuation.
After a remarkable rally over the past year, I believe much of the upside has already been realized. While Postal Realty remains an outstanding income vehicle, I no longer view it as an attractive buying opportunity at current prices.
A Buy Thesis That Played Out ✍🏾
When I previously covered Postal Realty, shares offered a compelling combination of:
Approximately a 7% dividend yield
An attractive valuation
Consistent dividend growth
Significant upside potential
Since then, the investment thesis has largely played out.
Shares have dramatically outperformed the broader market as investors rewarded the company’s disciplined acquisition strategy and steady earnings growth.
Sometimes the best investment decision isn’t buying a great business—it’s recognizing when a great business has become fairly valued.
