Stock of the Week

Gladstone's 6.2% Yield: As Interest Rates Fall, Monthly Preferred Shares Compelling

The 10-year US treasury just set a new all-time closing low of 0.92%. And for income-hungry investors, that makes select REIT investments increasingly attractive. For example, consider the big healthy monthly dividend payments of the preferred shares of industrial/office REIT Gladstone Commercial Corporation (GOOD). Not only did market wide fear drive the share price lower (and the healthy dividend yield higher), but it also made it easier for the businesses to refinance its debt, and on a relative basis it made the 6.2% yield that much more attractive. This article reviews the health of the business, the common and preferred shares, risks, dividend safety, and concludes with our opinion about why these big monthly-dividend-paying preferred shares are worth considering for a spot in your prudently-diversified long-term income-focused investment portfolio.