MGM Growth: Safe Haven for Income
11/02/2016 8:00 am EST
I’ve been looking to add more picks to our model portfolio, especially as the market provides moments like the present when we can buy strong assets on pullbacks, explains growth and income expert Bryan Perry, editor of Cash Machine.
Today is one of those times. MGM Growth Properties (MGP) is one of the leading publicly traded real estate investment trusts (REITs) engaged in the acquisition, ownership and leasing of large-scale destination entertainment and leisure resorts.
The diverse amenities of those properties include casino gaming, hotel, convention, dining, entertainment and retail offerings.
Growth will come by way of future acquisitions. MGP went public on April 19, 2016, at $21 per share and raced up to $28.79 before pulling back to its current price of $25.
MGP currently owns a portfolio of properties acquired from MGM Resorts, consisting of 10 premier destination resorts in Las Vegas and elsewhere across the United States.
The REIT owns trophy properties in Las Vegas such as Mandalay Bay, The Mirage, Monte Carlo and New York-New York. It also owns the Borgata Hotel in Atlantic City.
On September 15, 2016, MGP raised its quarterly dividend by 8.4% to $0.3875, or $1.55 per share per year, putting the current yield at 6.22%.
Thus, MGM Growth Properties is a great fit for our Safe Haven Portfolio. We recommend buying shares of this real estate investment trust under $26.
By Bryan Perry, Editor of Cash Machine