NEW YORK ( TheStreet) -- Shipping giant FedEx Corp. (FDX - Get Report) boasts a market capitalization of more than $27 billion and revenue of more than $42 billion. It's second only to UPS (UPS) in market capitalization.
The downside of this consistent performer is its 0.60% dividend yield -- not quite the material of income investors.
Enter Monmouth Real Estate Investment Corp. (MNR - Get Report). Organized in 1968, this is a publicly owned real estate investment trust specializing in net-leased industrial properties subject to long-term leases primarily to investment grade tenants.
Monmouth Real Estate Investment's current tenants include FedEx, Anda Pharmaceuticals, Anheuser-Busch Inbev SA (BUD), Best Buy (BBY), Caterpillar Logistics Systems, Coca-Cola (KO), Kellogg (K), Mead Paper, Sherwin-Williams (SHW) and Siemens (SI).So what does this triple-net-lease industrial REIT have to do with FedEx? A concentration of the company's properties are leased to FedEx. As of March 31, 2012, approximately 3.5 million square feet, or approximately 42% of the company's property, was leased to FedEx or one of its subsidiaries. In other words, FedEx supports this REIT with both its creditworthiness and its contractual leases. This, to a degree, makes Monmouth a backdoor play on FedEx. > > Bull or Bear? Vote in Our Poll
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts