You read it right, it’s APLE not AAPL.
Background: Apple Hospitality REIT (APLE) operates 179 hotels across the US under the Hilton and Marriott brands
I bought 20 shares of APLE at $18.xx for the yield ~6.3%, this is probably one of those boring monthly dividend stock, as they have not increase dividend since the IPO almost a few years ago. I read the news the Hilton was splitting its REIT ~$18.xx opening, but I didn’t buy it then. But after many weeks of landlording rants, hehehe, I figure, the real estate is still a lucrative business, but I just didn’t want to deal with being a landlord, but I still want to own some Hilton and Marriott real estates… heheh. So, why not, right?
APLE is expected to earn $0.53 for 2nd quarter, and it pays $0.10 monthly, so the company definitely have room to expand or increase its dividend. So $0.30/$0.53 = 56.6% payout ratio. This is superlow compare to the REITs industry, but the company has been expanding Apple REIT six, seven, eight, nine, now ten.
This stock also pays a monthly dividend as mentioned above. So, together with Realty Income (O), it will show up on my monthly dividend income.
It’s 5 more days before $APLE go ex-dividend 5/30/17. So, with this buy, I’ll be able to capture June’s dividend payout and the rest of the year.
With this buy, it’ll add $24 to my annual dividend.
Airbnb is probably the biggest threat to the hotel business. However, it might takes many years, and companies are still paying their employees premiums to stay at Hilton and Marriott as Airbnb housing services might be sporadic for many years to come vs the security and the amenities that are offered at American legit hotels.
Hotel REITs are sprone to recession, so the stock will move with the economy. However, I’m planning to hold this stock forever, so it wouldn’t matter if it go down 20-30%, I’d pick up more shares.
Full disclosure: I’m long APLE and O