When it comes to online stock trading for novices or even experienced traders, the opinion of stock market experts can make a difference and probably keep you from making a decision you’d later regret. That applies for buying dividend stocks as well.
If you check the S&P 500 index in the past 30 years, you’ll find that close to half of its total returns have been accounted for by dividends. In spite of that, you still need to do your research to identify the right dividend stock. And thanks to so many available options, researching could be more difficult. Motley Fool contributors have, however, identified a hotel REIT which has been, and could continue to be, high earning.
Pebblebrook on the Growth Pattern
The Pebblebrook Hotel Trust (NYSE: PEB) is a dividend stock which could attract income investors. As the name suggests, this real estate investment trust (REIT) focuses on hotels. The company buys high-end hotels at really cheap prices and improves their features and facilities, ensuring that they earn a good deal of revenue. And then at the right time it sells them for a reasonable profit.
This strategy has been working fine, and the AFFO (Adjusted Funds from Operations) metric has grown significantly by 22% annually in the past five years. In the same five-year period, the company’s dividend grew by a massive 23%. More recently, the company’s AFFO in the previous quarter spiked by 12.5%. This was when its management also sold three properties and secured significant revenue. This revenue can be used by the company for acquiring new hotels and growing their business further.
The company had to slightly bring down its full-year AFFO guidance because of a weaker than expected corporate demand. It now calls for around 5% full-year growth of AFFO with a $2.63 to $2.73 range. This enables shares to be valued at a little over 11 times the estimates for the full year. That can be considered a pretty attractive price for Pebblebrook since it has a favorable history characterized by strong growth, and now yields 5%.
Such expert guidance is invaluable for online stock trading. But a reliable online broker dealer can also be of immense help in providing the technology for smooth trading with the right trading platforms and software. You can expect that and much more at TradeZero. Call us at +1 954-944-3885, or email support@tradezero.co.
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