Discover the Hidden Gems That Could Transform Your Portfolio
The Dominance of Prologis in Logistics Real Estate
In the realm of logistics real estate, one name stands out—Prologis. As the global leader, this company commands a 3.6% yield based on recent valuations. With an impressive portfolio encompassing over 1.3 billion square feet of logistics space as of March, Prologis continues to expand its influence across the globe.
A cornerstone of Prologis's success is its superior credit rating, enabling it to secure financing at rates far below those available to its tenants. This financial advantage allows businesses to unlock capital by selling their logistics infrastructure to Prologis and leasing it back. Amazon, one of Prologis’s largest clients, accounts for merely 5% of its rental income, ensuring stability even if market dynamics shift. Over the past five years, Prologis has demonstrated remarkable growth, increasing its dividend payout by an average of 11.7% annually. International markets, where less than 30% of Prologis’s net operating income originates, present vast untapped potential for further expansion and dividend hikes.
MPLX: Mastering Midstream Energy Operations
MPLX operates within the midstream energy sector, managing extensive pipeline networks that transport gas and crude oil. Formerly part of Marathon Petroleum until 2012, MPLX maintains strong ties with its parent company, which remains a significant consumer of its services. These connections provide MPLX with unique insights into demand patterns, enhancing its operational efficiency and reliability.
Currently boasting a generous 7.5% yield, MPLX offers investors the prospect of achieving double-digit returns on cost over time. Over the last decade, MPLX has consistently raised its dividend by 8.1% annually. With first-quarter net income showing a robust 12% year-over-year increase, another substantial dividend boost appears imminent. Investors should note that MPLX is structured as a master limited partnership (MLP), which can introduce tax complexities when held in traditional IRAs exceeding $1,000 in annual income from such investments.
Mccormick: Adding Flavor to Investment Portfolios
For those seeking to infuse their portfolios with a dash of spice, McCormick emerges as an enticing option. Renowned for its spices and flavorings, McCormick boasts an enviable track record of paying dividends since 1925 and raising them consecutively for 38 years. Among consumer goods companies, few match McCormick's pace in increasing payouts, having achieved an average annual rise of 8.4% over the past decade.
Despite facing headwinds from rising commodity costs abroad, which have pressured earnings and caused a roughly 31% decline in stock price from its 2020 peak, McCormick remains optimistic about its future. Management anticipates a 6% increase in adjusted earnings for the year, reflecting underlying strength. At its current valuation, McCormick offers an attractive 2.5% yield, positioning patient investors for potentially double-digit yields on cost by retirement age.