The United States Postal Service (USPS) is its main tenant, which means that the US government pays for it.
No investment is really ever safe from risk. The US government is less likely to stop paying its rent. But there are some risks to think about, like when Trump tried to take money from the USPS. But in general, PSTL could have a bright future if it can keep or add to the more than 1,000 USPS lease properties it already has.
The stock hasn’t been very volatile in the past. Since its initial public offering (IPO), the share price has mostly been between $14.50 and $17.25. It is currently near the bottom of that range. The range offers a return of 20% or more, which could happen if the stock keeps staying at these lower levels as it has since 2019.
But investors should be careful because past performance is not a good indicator of future performance. Even though its low volatility hasn’t given long-term investors the return they may have hoped for, its high dividends make up for it. The dividend yield on PSTL shares is a generous 6.47 percent.
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Even though the REIT’s performance isn’t as good as the average market return, it does offer a nice layer of safety. The fact that institutions own 73% of the stock is also a good indicator of how well it might perform in the future.