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Steady Dividends, Industrial Strength: This REIT Is Built for Income
Noah Zelvis
September 01, 2025
STAG Industrial, Inc. (NYSE: STAG) stands out as a monthly dividend payer in a sector built on long-term stability.
For income investors seeking reliable cash flow and growth potential, STAG is a REIT you can’t afford to overlook.
STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust specializing in the acquisition, development, and management of single-tenant industrial properties across the U.S.
With a sizable, diversified commercial real estate portfolio spanning 600 buildings and 41 states, STAG has carved out a niche as an investment that gives investors an elusive combination of income plus growth.
For dividend-focused investors, there's little doubt that STAG presents an appealing mix of steady yield (~4.04% forward) and capital preservation.
Solid long-term growth potential comes from its disciplined approach to property acquisitions and longstanding operational efficiencies.
STAG’s expansion and optimization strategies sustain a solid dividend coverage through net-leased assets and long-term tenant agreements.
Its monthly dividend history and high occupancy rates reflect a resilient income profile, even across fluctuating markets.
This is an attractive option for dividend investors seeking exposure to industrial properties, with a set-and-forget monthly income.
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Operational Overview and Recent Earnings
STAG acquires and operates single-tenant industrial properties across the U.S., often under long-term net leases.
The benefit of this model for STAG is that it allows the company to shift many of the building operating costs to tenants.
This targeted approach provides predictable cash flows and reduces operational risk, setting STAG apart within the REIT space.
As of mid-2025, the company’s portfolio encompasses over 118 million square feet of industrial real estate.
This scale, combined with geographic and tenant diversification, provides inherent resilience against localized economic slowdowns.
In its Q2 2025 earnings release, STAG reported an occupancy rate of 96.3%, underscoring the ongoing strength in demand for logistics and distribution space.
It reported a 3.9% increase in cash available for distribution, up to $98.8 million for the second quarter.
Commenced Operating Portfolio leases of 4.2 million square feet were also confirmed for the second quarter of 2025, resulting in a Cash Rent Change and Straight-Line Rent Change of 24.6% and 41.1%, respectively, while 75.3% of expiring leases were retained.
Also in Q2, Moody's Investor Services raised the company's corporate credit rating to Baa2 with a stable outlook from Baa3 with a positive outlook.
The company’s CEO emphasized disciplined capital deployment and a strong pipeline of acquisition opportunities, reaffirming STAG’s commitment to both income stability and long-term growth.
The quarterly results reinforced its reputation for consistent cash generation, enabling the REIT to maintain its monthly dividend schedule without interruption.
Action: While its net-lease model and broad diversification support resilience, potential STAG investors should remain mindful of interest rate trends and acquisition pacing, which can influence near-term growth. |
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Dividend Profile
STAG pays a monthly dividend of 12 cents with a 4.04% yield. It has raised the dividend amount for seven consecutive years.
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Bear Case
Investors should be mindful of two potential red flags when considering this stock.
The first is the company’s vulnerability to interest rate increases. As a REIT, STAG depends heavily on debt financing for acquisitions and growth.
Higher interest rates increase borrowing costs, compress spreads, and may limit accretive deals.
Rising rates also make bonds and safer income products more attractive, reducing investor appetite for REITs.
While growth has been solid thus far, we can’t assume it will continue at the same pace.
The industrial REIT sector has been a big beneficiary of e-commerce and supply chain reshoring, but growth is moderating.
With logistics demand normalizing post-pandemic, STAG may face tougher competition for acquisitions and slower rent growth.
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Should You Invest?
Whether STAG is right for you depends on the kind of income you're looking for and your risk tolerance.
STAG pays a reliable monthly dividend, making it a solid income builder; however, this is balanced by the fact that increases have been incremental.
For income investors seeking higher dividend growth, STAG may be less appealing compared to peers with faster-growing payouts.
On the flip side, STAG offers a nice balance of income stability and long-term growth potential.
Its monthly dividend, underpinned by a diversified portfolio of mission-critical industrial properties, provides consistent income, while disciplined acquisitions and high occupancy rates support future expansion.
With resilience built into its net-lease model and exposure to enduring demand for logistics and distribution space, STAG offers investors a dependable way to generate reliable income while participating in the continued growth of U.S. industrial real estate.
That’s all for today’s edition of the Dividend Brief.
Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!
—Noah Zelvis
DividendBrief.com