GLPI Stock Continues to Reward Dividend Investors
As a dividend investor, one of the top considerations is if the dividend is sustainable over the long term, based on the company’s operations.
A sector that is well known for paying a dividend is the real estate sector. There are many different ways for investors to enter this sector, such as residential and commercial real estate.
As a retail investor, commercial real estate is the more difficult of the two to enter. In order to invest in this market segment, a larger amount of capital is required when compared to residential real estate. However, the sector does offer many opportunities in return.
One such company is Gaming and Leisure Properties Inc (NASDAQ:GLPI) stock. Dedicated to acquiring, financing, and owning real estate properties that are leased to gaming operators, Gaming and Leisure Properties has a unique set of assets in their portfolio. Its properties are located across 14 states and include cities such as Las Vegas, New Orleans, and Hollywood.
Trading at $30.37, the current dividend yield for GLPI stock is 7.93%. Based on this yield, GLPI stock would also be classified as a high-dividend stock. The dividend, paid on a quarterly basis, is $0.60 per share and has seen an annual increase since the initial public offering (IPO) in 2013. Therefore, GLPI stock could be classified as a dividend growth stock as well.
While a high dividend and dividend growth are great for dividend investors, the most exciting aspect of GLPI stock occurred in 2014, when two special dividends were paid to shareholders. The first occurred in the beginning of the year and was worth $11.84, while the other, paid near the end of the year, was worth $0.40 per share. A special dividend, paid on top of the regular one, is obtained when there is surplus cash.
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Fundamental Overview
For patient dividend investors, the number-one concern after the safety of the dividend is the volatility of the stock price movement. Gaming and Leisure Properties’ beta is 0.6, meaning that, based on the overall market’s beta of 1.0, if the market fell by one percentage point, then GLPI stock should fall by 0.61% on average. In other words, the movement of GLPI stock is not as volatile as the overall market.
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Another metric that could be compared to the overall market is the forward price-to-earnings (P/E) ratio. This metric is calculated by taking the current trading price and dividing it by projected earnings for the next year. This ratio also details how much is being paid for the stock based on earnings. The lower the forward price-to-earnings ratio, the better it is from a valuation perspective. In the case of GLPI stock, the P/E ratio is 7.61 times, which is much lower than the S&P 500’s 19.04 times.
Final Thoughts on GLPI Stock
Gaming and Leisure Properties Inc is a unique business that has high barrier to entry thanks to the difficulty of obtaining a commercial building.
GLPI stock is a great investment opportunity to consider. GLPI stock is a high-dividend growth stock that pays a special dividend with future growth opportunities present.