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Today in the stock market: Stocks climb on the back of stronger-than-expected GDP growth, while Tesla experiences a decline.

  Despite Tesla (TSLA) reporting disappointing earnings and a higher-than-expected US economic growth reading, US stocks climbed on Thursday. The Dow Jones Industrial Average (^DJI) gained 0.2%, the S&P 500 (^GSPC) rose 0.4%, extending its record streak from the previous day, and the Nasdaq 100 (^NDX) inched up about 0.6%.  The morning release of the advance estimate for fourth-quarter US gross domestic product (GDP) revealed a robust annualized growth rate of 3.3%, surpassing economists' expectations of 2%. Tesla, in its quarterly results, cautioned about a "notably" slower growth in electric vehicle production, missing profit forecasts. CEO Elon Musk expressed concerns about Chinese carmakers outpacing rivals in the absence of trade restrictions. Tesla shares plummeted up to 11%, marking a deeper decline compared to other tech-heavy "Magnificent Seven" stocks that have been propelling the S&P 500's surge. After-hours attention focused on Intel (INT...
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This relatively obscure Real Estate Investment Trust (REIT) has surged by more than 50% in the last twelve months while continuing to maintain a solid 7.67% yield.

 Finding stocks that offer both capital appreciation and a generous dividend can often be a challenge for investors. Typically, high-yielding dividends are associated with stocks that have experienced significant declines in their share prices.


However, imagine discovering a stock that not only presents a high-yielding dividend but has also outperformed all its competitors over the past 52 weeks, achieving substantial gains while distributing monthly dividends.

Consider Modiv Industrial Inc. (NYSE: MDV), a Reno, Nevada-based diversified REIT managed internally, housing 44 single-tenant net-lease properties spanning 4.9 million square feet across 16 states. Among these properties, 39 are industrial, four are office spaces, and one is a retail property, housing 30 tenants. With a 100% occupancy rate and an impressive weighted-average lease term (WALT) of 14 years, this portfolio also features annual rental increases averaging 2.5%.


Established in 2015, Modiv had its IPO in February 2022 and underwent a name change from Modiv Inc. to Modiv Industrial Inc. in August, signifying its focus on predominantly industrial properties.

Although Modiv is a growing company, it remains relatively under the radar as a micro-cap stock, boasting a market cap of $113.7 million. Its stock has ranged from $10.01 to $19.12 over the past 52 weeks. Since its IPO, Modiv has aggressively acquired over $214 million worth of industrial manufacturing assets while divesting 10 office buildings and multiple retail properties.

Recently, Modiv completed dispositions in August, selling 11 retail and two office properties to Generation Income Properties Inc. (NYSE: GIPR) for $30 million in cash and $12 million of Generation Income's preferred stock, offering monthly dividends at a 9.5% annual rate.

In its third-quarter operating results released on Nov. 13, Modiv Industrial reported adjusted funds from operations (AFFO) of $0.33, aligning with estimates and marking a 6.4% increase from the third quarter of 2022. Its revenue of $12.5 million surpassed estimates by 21%, showing a significant rise from $10.21 million in the same quarter last year.

Furthering its positive financial stance, Modiv reduced leverage by $10 million and trimmed its net debt to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 14% from the prior quarter. All of its $285 million debt is now in fixed-rate loans with an average interest rate of 4.52%, and the earliest meaningful maturity starts in 2027. The company has also declared its intention to pursue future acquisitions using cash instead of high-interest debt.

Modiv currently offers a monthly dividend of $0.0958 per share, with the next payout scheduled for Dec. 26 to shareholders as of Nov. 30 and an ex-dividend date of Nov. 29. With an annual dividend of $1.1496, this yields 7.67%. While the forward annual payout ratio is relatively high at 87.7%, it remains manageable.

Furthermore, insider purchases of company stock in recent months indicate confidence in Modiv. CEO Aaron Scott Halfacre notably acquired 203.42 shares at $14.54 each on Oct. 25, demonstrating his belief in the company's potential. Other insiders have also purchased shares over September and October

B. Riley Securities reaffirmed a Buy rating on Modiv on Nov. 15 and increased the price target from $17 to $18 per share. This represents a potential gain of 20.1% from its recent closing price of $14.98.

With a total return of 53.49% over the past 52 weeks, making it the top-performing REIT, and maintaining a strong performance during September, Modiv stands out. While future performance might not mirror its past success, it remains a REIT likely to continue performing well, offering investors a lucrative monthly dividend.

The Weekly REIT Report by Benzinga offers insights into misunderstood investment options like REITs, providing access to exceptional opportunities in today's market. Signing up for this report can offer valuable information to investors.

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