These high-yield dividends still look solid: Allied Properties Real Estate Investment Trust and Extendicare Inc.

Article Excerpt

COVID-19 has increased the possibility that these two high-yielding stocks could cut their dividends. While that’s always a possibility, we feel their payments are secure for now. ALLIED PROPERTIES REAL ESTATE INVESTMENT TRUST $40 is a buy. The REIT (Toronto symbol AP.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 123.1 million; Market cap: $4.9 billion; Dividend yield: 4.1%; Dividend Sustainability Rating: Above Average; creates value for investors through its 198 office buildings, mainly in major Canadian cities. Most of those are classified as Class I buildings, and together they comprise over 12.9 million square feet of leasable area. The overall occupancy rate is a high 94.8%. Class I refers to 19th- and early-20th-century industrial buildings that are now used as office space. They often have exposed beams and brick walls, and hardwood floors. Allied keeps growing steadily by well-timed and savvy acquisitions: It spent $549.5 million on properties in 2019 and $345.8 million in the latest quarter. As a result, the trust’s revenue increased by 19.3%…

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