STAG Industrial’s recent earnings show strong performance despite market selloff

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STAG ($NYSE:STAG) Industrial’s recent earnings show strong performance despite market selloff. The U.S. economy is heading towards a recession, interest rates are sharply on the rise and expected to hit above 4.5% by the end of the year, inflation is in the 9% area and the 2-year Treasury is yielding in excess of 4%.All this creates a toxic cocktail for REITs and BDCs and while some stocks of that sector like W. P. Carey have been able to withstand a large selloff this year, other stocks have really suffered and today’s market-wide selloff in the REIT and BDC sector creates attractive long-term buying opportunities.Investors are selling former high-yielding stocks in the REIT and BDC sector and instead turn towards seemingly risk-free Treasuries and thus it is important to focus on high-quality stocks with strong balance sheets, healthy leverage and manageable debt maturity ladders.STAG Industrial fits all these criteria and yet the stock is down a massive 38% with its dividend yield now back at 5%.Data by YChartsI am buying REITs and BDCs via weekly and monthly savings plans and consider the current selloff in STAG presents an attractive opportunity.

Dividends

STAG Industrial recently released its earnings for the second quarter of fiscal year 2022. Despite the market selloff, the company showed strong performance, with a dividend per share of 1.46 USD. This is higher than the dividends of 1.45 USD and 1.44 USD paid out in the last two years. STAG Industrial’s dividend yields from 2020 to 2022 are 4.79%, 3.94%, and 3.51%.

This gives a three-year average dividend yield of 4.08%. If you are looking for dividend stocks, STAG Industrial might be worth considering.

Stock Price

STAG Industrial stock opened at $28.6 on Wednesday and closed at $29.0, up 2.0% from the previous closing price of $28.4. Most news coverage of STAG Industrial has been positive, with the stock price reflecting this. On Wednesday, STAG Industrial opened at a higher price than it had been closing at recently, and closed at a higher price as well.

VI Analysis

STAG Industrial is a real estate investment trust that focuses on the acquisition and operation of single-tenant industrial properties across the United States. The company’s fundamentals reflect its long-term potential, and the VI app makes analyzing them easy. Based on the VI Risk Rating, STAG Industrial is a medium-risk investment in terms of financial and business aspects. However, there are potential risks in both the business and financial areas that investors should be aware of.

Summary

STAG Industrial’s recent earnings show strong performance despite market selloff. STAG Industrial’s stock has been on a tear this year, up nearly 30%. The company has benefited from the strong performance of the U.S. economy, which has helped drive demand for industrial space.

The company’s focus on the industrial sector has also been a tailwind, as the sector has outperformed the overall real estate market. With STAG Industrial’s strong earnings and positive news coverage, now may be a good time to consider investing in the company.