Collect stable income up to 4.1% by being the landlord of GameStop and AMC — gain exposure to red-hot meme stocks without the crazy volatility
It has almost been one year since the meme stock frenzy started in late January 2021.
In just a few trading sessions, names like GameStop and AMC Entertainment saw their stock prices shoot through the roof.
But parabolic runs don’t last forever.
Shares of both GameStop and AMC pulled back substantially shortly after. And while these stocks have largely managed to recover — GameStop soared more than 10% Friday on its NFT plans — they remain extremely volatile investments.
If you’d like to play these names without the high volatility, there are more stable ways to do it.
For instance, some real estate investment trusts own properties leased to these companies. REITs collect rental income from their properties and pass it to shareholders in the form of dividends.
Here’s a look at two stocks that allow investors to become landlords of GameStop and AMC — one could be worth purchasing with some of your extra cash.
Macerich (MAC)
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Headquartered in Santa Monica, Calif., Macerich is a REIT that focuses on the acquisition, management, and development of regional malls in the U.S.
The company currently owns around 49 million square feet of real estate, which is primarily made up of interests in 45 regional town centers.
And GameStop happens to be one of its tenants.
Macerich pays quarterly dividends of 15 cents per share, which translates to an annual yield of 3.2% at today’s prices.
In Q3 of 2021, the company’s funds from operations came in at 45 cents per share. Meanwhile, portfolio occupancy improved 90 basis points sequentially to 90.3%.
The average rent per square foot at the end of September 2021 was $62.58, up 0.5% compared to a year ago.
Macerich also plans to reduce its leverage.
“We expect to generate free cash flow after payment of dividends and recurring capital expenditures, exceeding $200 million per year over the next few years,” said CFO Scott Kingsmore in the Q3 conference call,…
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