Stag Industrial (STAG) Delivers 13.8% Annual Return, Paving Path to Millionaire Retirement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 23 2025
0mins
Source: Fool
- Superior Long-Term Returns: Since its IPO in 2011, Stag Industrial has delivered an average annual total return of 13.8%, significantly exceeding the market average of 10%, enabling investors to potentially reach millionaire status in about 30 years.
- Rental Growth Potential: With leases escalating at a weighted average annual rate of 2.9% and market rents rising faster, Stag expects same-property net operating income (NOI) to grow by over 4% this year, supporting its ability to maintain a 4% dividend yield.
- Diversified Investment Strategy: Stag invests approximately $700 million annually in new income-producing industrial properties, including value-add opportunities and ground-up developments, which, combined with existing property growth, drive higher growth rates in funds from operations (FFO) per share.
- Robust Financial Position: The company funds new investments through over $100 million in annual free cash flow, non-core property sales, and new debt and equity financing, with a conservative balance sheet that supports ongoing growth.
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Analyst Views on STAG
Wall Street analysts forecast STAG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STAG is 40.90 USD with a low forecast of 38.00 USD and a high forecast of 46.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
3 Buy
7 Hold
0 Sell
Moderate Buy
Current: 36.630
Low
38.00
Averages
40.90
High
46.00
Current: 36.630
Low
38.00
Averages
40.90
High
46.00
About STAG
STAG Industrial, Inc. is a real estate investment trust (REIT), which is focused on the acquisition, ownership and operation of industrial properties throughout the United States. Its platform is designed to identify properties for acquisition that offer relative value across CBRE-EA Tier 1 industrial property types and tenants through the principled application of its proprietary risk assessment model; provide growth through sophisticated industrial operation and an attractive opportunity set, and capitalize on its business appropriately given the characteristics of its assets. The Company's portfolio consists of approximately 590 buildings in 41 states with approximately 116.6 million rentable square feet. It owns all of its properties and conducts substantially all of its business through STAG Industrial Operating Partnership, L.P. (Operating Partnership).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
STAG Industrial Announces Tax Treatment for 2025 Dividends
- Dividend Overview: STAG Industrial has announced the tax treatment for its 2025 common stock dividends, with an expected ordinary taxable dividend of $1.499297 per share, indicating the company's ongoing cash flow and shareholder return capabilities.
- Capital Gain Distribution: The total capital gain distribution for 2025 is reported at $1.385009, reflecting the company's robust performance in asset appreciation, which enhances investor confidence in its long-term investment value.
- Tax Compliance Transparency: The company emphasizes that shareholders should consult their personal tax advisors to ensure a clear understanding of the specific tax treatment of dividends, demonstrating its commitment to compliance and transparency.
- Portfolio Scale: As of September 30, 2025, STAG Industrial's portfolio consists of 601 buildings with approximately 119.2 million rentable square feet, showcasing its strong market position and growth potential in the industrial real estate sector.
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STAG Industrial: 4% Steady Dividend Amid Automation Trends
- Automation Investment Opportunity: Only 37% of U.S. manufacturers currently utilize automation, with 73% planning to increase investment in the next three years, indicating significant growth potential for STAG Industrial as a real estate investment trust.
- Stable Dividend Returns: STAG Industrial offers a 4% dividend yield, which, despite only a 3% increase over the past five years, remains reliable with a payout ratio of 59% of core funds from operations, making it a solid investment choice.
- Strong Market Performance: Over the past five years, STAG's stock has returned 55%, demonstrating resilience amid market fluctuations, with expectations for continued upside potential.
- Beneficiary of Economic Growth: With the U.S. economy recovering, STAG Industrial boasts a rental rate of 96.8%, and its portfolio is closely aligned with trends in manufacturing automation and reshoring, signaling future growth potential.
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