Real Estate Sector Ideas

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Prologis - >>> Opinion: Three dividend stocks of cash-flow-rich companies poised to thrive during this economic crisis


MarketWatch

By Philip van Doorn

5-9-20


https://www.marketwatch.com/story/three-dividend-stocks-of-cash-flow-rich-companies-poised-to-thrive-during-this-economic-crisis-2020-05-07?siteid=bigcharts&dist=bigcharts


Prologis PLD, -0.95% is a real-estate investment trust that develops, operates and leases warehouses and distribution centers, while also providing logistics services. Its top customer, with 17 million square feet of leased space (5.8% of “net effective rent”) at the end of 2019 was Amazon.com AMZN, +0.87%. Other large customers include Home Depot HD, +2.06%, FedEx FDX, -1.45%, United Parcel Service UPS, -0.72% and Walmart WMT, +2.04%.

The stock is down 1% this year and has a dividend yield of 2.64%. The company was included in this “early” list of S&P 500 companies that increased their quarterly sales the most from a year earlier, as most companies reported sales declines.

The continued transition to online retail has been a boon to Prologis, with the shares returning 160% over the past five years, compared with a 52% return for the S&P 500. Koontz believes “inventory building” will now be the “biggest driver” for Prologis over the long term, in light of all the shortages experienced in the U.S. since the coronavirus shutdown began in March.

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