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This Already Resilient 3%-yielding Dividend Stock Is Getting Even Stronger
Sun Communities (NYSE: SUI) has a very durable business. The real estate investment trust (REIT) is the largest publicly traded owner-operator of manufactured home and RV communities. These properties produce very resilient recurring revenues, which help support the REIT's 3% yielding dividend.
The residential REIT's already highly resilient dividend is about to grow even stronger in the future. Driving the improved sustainability are asset sales that will significantly bolster its already solid balance sheet.
Manufactured housing communities are some of the most durable rental properties. It's very expensive to relocate a manufactured home ($6,000 to $10,000). Because of that, most tenants remain in place for years and eventually sell their homes to a new tenant when they want to move. Meanwhile, with virtually no new supply of manufactured home communities and strong demand due to the affordability of these properties, landlords can steadily raise lot rents, even during a recession.
