National Retail Properties, a real-estate investment trust or
REIT, has retaken its 50-day moving average as it approaches a
37.75 buy point of a saucer-with-handle base.
But the prospect of capital appreciation is just part of the
National Retail Properties (
), based in Orlando, Fla., and a member of the S&P High Yield
Dividend Aristocrats Index, has boosted its dividend for 25
The latest increase was announced on July 15, when the company
raised its quarterly payout by 1.5 cents, or 4%, to 42 cents a
share. The annual dividend of $1.68 yields a juicy 4.5% at the
current share price.
National Retail Properties says that it invests mainly in
high-quality retail properties subject to long-term net leases.
In a net lease, the tenant pays the landlord rent plus some or
all of property expenses such as taxes, insurance and
maintenance. Other net-lease REITs in IBD's dividend screen
includeSpirit Realty Capital (
) andRealty Income (
), which was profiled in Thursday's IBD.
National Retail owns about 1,900 properties in 47 states
covering 38 industries. Convenience stores account for about 20%
of the properties leased, followed by full-service restaurants
and auto-service businesses. Its occupancy rate rose 0.3 point to
98.5% in Q2.
Profit for the second quarter rose 4% to 51 cents a share,
slowing from the prior quarter's 8% gain but in line with Wall
Street forecasts. Revenue for the period increased 13% to $104.1
million, the smallest gain in five quarters but in line with the
The stock is up 22% this year, easily outpacing the S&P
500. It's currently 2% below the 37.75 buy point; but its
Accumulation/Distribution Rating is C, indicating a standoff
between buyers and sellers.
On July 25, Ladenburg downgraded the stock to neutral on
National Retail says that risks include economic turmoil and
disruption in capital markets, which could hurt tenants and
depress property values.