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Most industrial dividend stocks are easily impacted by economic cycles, making the industrial sector a hard play today. But industrial real estate can offer investors a bit more security. Since these companies benefit from earning revenue through long-term leases, they can offer more stability during volatile markets.
The key is to follow the lead of smart investors, who choose strategic industrial stocks that can withstand market swings and help ride out the impacts of recessions. Three such industrial stocks that smart investors are buying are STAG Industrial (NYSE: STAG), Americold Realty Trust (NYSE: COLD), and Prologis (NYSE: PLD). Here’s a closer look at why these stocks are great buys.
Kristi Waterworth (STAG Industrial): STAG Industrial is a pure-play industrial real estate investment trust (REIT), with facilities for lease in a total of 40 states, up from 26 when it went public in 2011. Since its initial public offering (IPO), it’s grown from 14.2 million square feet of rental space to 111.5 million square feet in leasable property. In addition, in that time, STAG Industrial has improved its balance sheet. Its debt-to-capital ratio has dropped from 46.8% when it went public to just 30.2% as of the most recent quarter.