VER - Is VEREIT a Safe Stock to Buy Right Now?
The bad news is that VEREIT (NYSE: VER) cut its dividend roughly 45% in May as the global pandemic started to spread. The good news, however, is that the future should be much brighter than the past. Why? The net-lease real estate investment trust (REIT) has turned an important corner. Here's what you need to know.
When COVID-19 started to spread around the globe, nobody knew exactly what to expect. It was a time of great uncertainty, and people were frightened. VEREIT took actions to ensure it would have the financial strength and liquidity to survive if things got bad -- which, in addition to the dividend cut, included selling debt. When CEO Glenn Rufrano discussed the issue in the second-quarter earnings release, he specifically noted that the board's choice was driven by economic uncertainty, not company-specific issues.
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Is VEREIT a Safe Stock to Buy Right Now?