First, the business model. The REIT owns one of the largest portfolios of upscale Marriot and Hilton families of brands within the US. With the corporate tax cuts passed in late 2017 by the GOP, and the potential for this to increase employer and employee revenue, it means there could be a possible increase in travel in 2018. An increase in travel could mean more customers on top of the increased earnings from tax cuts for these hotels.
Second, the dividends history is in my opinion; quite lovely. The REIT has paid a monthly dividend of .10 each month since May 2015 when they first went public. I’m a big believer in dividend stocks. I started investing in them in my late 20’s and I found that through market ups and downs it’s always been a steady income stream and continues to be a strong factor in my portfolio planning.
Third, the stock is easy to obtain. There are many REIT and Dividend stock options out there, such as Vanguard REIT Index Fund ETF Shares or Vanguard High Dividend Yield Index Fund ETF with solid yields, however both are higher valued stock options where as Apple Hospitality is still what I consider to be in the value stock price range under $20/share at the time of this writing.
Lastly, the positive news coverage for APLE hasn’t affected the stock’s price and therefore leads me to believe that holding onto it for the long term could provide some very strong gains in the future.
Have an opinion on this stock or a favorite REIT of yours? Let me know in the comments below.
Michael Hurston owns shares of APLE. He has no positions in either Vanguard stocks mentioned. MGHurston Creative Services, LLC has no positions in any of the stocks mentioned nor recommends any. If you have any interest in investing in anything ever, please contact your financial advisor.