2023-06-27 07:30:00 ET
Prologis (NYSE: PLD) has done a masterful job growing its dividend. The leading industrial REIT has increased its payout at a 15% compound annual rate since its initial public offering. That ranks 13th-best among the S&P 100 (the 100 largest U.S. corporations). Meanwhile, its dividend has grown twice as fast as the S&P 500 over the past five years (12% annually versus 6%). The company currently offers an attractive dividend yield of 3%.
Prologis' payout should continue its unstoppable growth. It recently enhanced its already strong growth prospects by acquiring $3.1 billion of industrial properties from funds managed by Blackstone (NYSE: BX) . The deal will boost its income in the near term while providing additional upside potential.
Prologis has agreed to buy 14 million square feet of industrial properties in the U.S. from Blackstone. It's paying $3.1 billion in cash, valuing the portfolio at a 4% capitalization rate . That's a solid exit rate for Blackstone and a fair price for Prologis to pay. This valuation implies Prologis will generate an immediate 4% income yield on its investment.
For further details see:
This Dividend Growth Stock's $3.1 Billion Deal Will Make Its Payout Even More Unstoppable