Gladstone Land (LAND)

[winston]

not vested

How to Buy Farmland at a Discount in Your Brokerage Account

By Dr. Steve Sjuggerud

Gladstone Land owns more than 67,000 acres of U.S. farmland worth $558 million... As of its latest financial report, its land value is $13.57 per share (in net asset value).

The company owns 79 farms in nine states... So it offers you a diversified portfolio of farmland, both geographically and across a variety of crops.

Over the last month, shares of Gladstone Land have fallen. It's trading at roughly $11.80 per share as of Friday's close – or a 13% discount to net asset value. So you can own its diversified farmland portfolio at a solid discount today.

Historically, farmland has been a good hedge against inflation. But one of the best reasons to invest is Gladstone's dividend...

Gladstone is structured as a real estate investment trust ("REIT"). REITs are legally required to pay out at least 90% of their net earnings in the form of dividends.

Gladstone pays a stable (but growing) monthly dividend – which it takes out of rental income from leasing land to farmers. With the share price so low today, the monthly dividend payment works out to a 4.5% yield.

David Gladstone, the company's founder, explained what kind of business he's running during his latest conference call with investors. He said:

We recently raised the dividend again... Over the past 40 months, we raised the dividend 10 times...

Since 2013, we've made 63 consecutive monthly distributions to stockholders. It's [about $3.51 per share] total distributions.

With a stock market value of about $180 million, Gladstone Land is too small for me to write up as a recommendation to my subscribers. I can't research it for my main newsletters. Still, I wanted to pass this idea along to you.

You are welcome to dig in a bit more and see if it's right for you.

Source: Daily Wealth