Why Is Global Net Lease's Dividend So High?
Dividend investors are attracted to high yields for a good reason; they mean more income is generated from a portfolio. But extremely high yields need to be taken with a grain of salt, which is the case when you examine Global Net Lease (NYSE: GNL) and its hefty 14% yield. Here are a few facts that might lead you to pass on this high-yield stock.
Global Net Lease, as its name implies, uses a net lease business model. That means that its lessees are responsible for most of the operating costs of the assets they occupy. The global part of the name refers to the fact that this real estate investment trust (REIT) owns assets in both North America and Europe with a roughly 60/40 split. On top of that diversification, Global Net Lease also invests across asset classes, with industrial and warehouse at roughly 55% of the portfolio, office at 40%, and retail is the remainder. From a big-picture perspective, that's not a bad story.
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Source Fool.com
