Excessive Dividend 50: Modiv Industrial Inc.

Printed on November twelfth, 2025 by Felix Martinez

Excessive-yield shares pay out dividends which might be considerably larger than the market common. For instance, the S&P 500’s present yield is simply ~1.2%.

Excessive-yield shares may be notably helpful in supplementing earnings after retirement. A $120,000 funding in shares with a median dividend yield of 5% creates a median of $500 a month in dividends.

Modiv Industrial Inc. (MDV) is a part of our ‘Excessive Dividend 50’ sequence, which covers the 50 highest-yielding shares within the Positive Evaluation Analysis Database.

Now we have created a spreadsheet of shares (and carefully associated REITs, MLPs, and many others.) with dividend yields of 5% or extra.

You may obtain your free full checklist of all securities with 5%+ yields (together with necessary monetary metrics similar to dividend yield and payout ratio) by clicking on the hyperlink under:

Subsequent on our checklist of high-dividend shares to evaluate is Modiv Industrial Inc. (MDV).

Enterprise Overview

Modiv Industrial Inc. is an actual property funding belief (REIT) that focuses on buying, proudly owning, and managing single-tenant industrial properties throughout the USA. The corporate’s portfolio primarily consists of mission-critical amenities leased to creditworthy tenants beneath long-term, triple-net leases—which means tenants are chargeable for property taxes, insurance coverage, and upkeep.

This construction gives Modiv with secure, predictable money flows, whereas its concentrate on industrial belongings permits it to learn from robust demand within the logistics, manufacturing, and e-commerce sectors.

Modiv’s technique facilities on disciplined capital allocation, tenant high quality, and diversification throughout industries and geographies. The corporate seeks to generate constant dividend earnings and long-term worth progress by sustaining conservative leverage and focusing on belongings with built-in hire escalations.

As well as, Modiv emphasizes transparency and shareholder alignment—its administration workforce and workers maintain a significant possession stake within the firm, reinforcing a concentrate on sustainable progress and efficiency.

Supply: Investor Relations

The corporate, the one public REIT targeted solely on industrial manufacturing actual property, reported second-quarter 2025 income of $11.8 million and a web lack of $2.8 million. Adjusted funds from operations (AFFO) rose 22% year-over-year to $4.8 million, or $0.38 per diluted share, exceeding expectations. The corporate additionally renewed a five-year lease with Northrop Grumman in Florida, that includes 2% annual hire will increase.

CEO Aaron Halfacre described the quarter as regular and disciplined regardless of market volatility. He highlighted bettering lending situations, potential acquisition and asset recycling alternatives, and Modiv’s dedication to conservative administration.

With a powerful stability sheet and a 14-year common lease time period, Modiv stays targeted on secure earnings progress and long-term shareholder worth by way of disciplined execution and strategic portfolio administration.

Supply: Investor Relations

Progress Prospects

Modiv Industrial Inc. is pursuing a progress technique centered on buying high-quality industrial properties, with potential growth into retail, information facilities, and storage belongings. Whereas the corporate’s working historical past is comparatively quick, administration goals to construct a diversified, income-producing portfolio that enhances adjusted funds from operations (AFFO) per share over time.

Current acquisitions, similar to 4 industrial and one retail property in 2022, exhibit Modiv’s intention to scale by way of disciplined, accretive transactions that strengthen its presence within the industrial actual property sector.

Nonetheless, Modiv faces near-term challenges that would sluggish its progress. The corporate’s excessive dividend yield makes issuing further fairness much less engaging, as the price of capital might exceed anticipated funding returns. Equally, elevated rates of interest make debt financing costly, and most popular fairness at an 8% yield provides additional stress.

In consequence, Modiv’s progress is anticipated to stay regular fairly than speedy within the medium time period, with administration doubtless prioritizing stability sheet stability and constant dividend funds over aggressive growth.

Aggressive Benefits & Recession Efficiency

Modiv Industrial Inc. advantages from a targeted funding technique in single-tenant, net-lease industrial properties—an asset class recognized for secure, long-term money flows. Its tenants are usually established producers with mission-critical operations, lowering the danger of emptiness and making certain dependable rental earnings.

The corporate’s use of triple-net leases shifts property bills similar to taxes, insurance coverage, and upkeep to tenants, serving to defend revenue margins and money movement stability. This disciplined strategy permits Modiv to take care of predictable returns and decrease operational volatility in comparison with extra diversified REITs.

Throughout financial downturns, Modiv’s portfolio construction and tenant base present some resilience, as industrial tenants usually prioritize lease continuity to keep away from disrupting manufacturing and provide chains.

Whereas the corporate’s small dimension and restricted working historical past make it extra susceptible to capital market pressures throughout recessions, its lengthy lease phrases and conservative stability sheet provide some safety. By specializing in essential-use properties and sustaining monetary self-discipline, Modiv is positioned to climate financial slowdowns higher than many friends in additional cyclical actual property sectors.

Dividend Evaluation

Modiv’s dividend is the corporate’s most compelling function from an investor’s perspective. Presently yielding 8.0%, it far exceeds the S&P 500’s common of 1.2% and represents one of many highest yields the inventory has provided since going public.

The projected payout ratio for 2025 is 85%, which is cheap for a REIT, although an extended historical past of constant funds would offer better confidence within the dividend’s sustainability. Given this payout ratio, dividends are anticipated to stay flat by way of 2030 except adjusted funds from operations (AFFO) develop quicker than anticipated.

Buying and selling at $14.60 per share, Modiv’s price-to-AFFO ratio is slightly below 10.5, barely above a five-year goal of 10.0, suggesting restricted upside from valuation good points. General, whole returns over the subsequent 5 years are prone to be pushed primarily by the dividend, with mid-to-high single-digit annual returns anticipated.

Remaining Ideas

Modiv is a comparatively new month-to-month dividend inventory with a restricted working historical past, making it troublesome to attract definitive conclusions about its efficiency. Given the present market surroundings, the corporate might face challenges executing its progress technique with out risking shareholder dilution.

Based mostly on our assumptions—together with flat per-share progress and modest valuation pressures—we estimate the inventory might generate annualized returns of roughly 6.0%, pushed primarily by its dividend. In consequence, we assign Modiv a maintain ranking.

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