When is a Railroad Not a Railroad? When it is a REIT

When reviewing some of the top yielding REIT's listed at WallStreetNewsNetwork.com, I came across an interesting stock, actually an interesting Real Estate Investment Trust. It is a railroad, Pittsburgh & West Virginia Railroad (PW), a debt free company founded in 1916 that pays a yield of 4.7%. The company owns and leases a 112 mile railroad which runs from eastern Ohio to western Pennsylvania.

Earnings for the quarter ending year end were up 1%. However, quarterly earnings dropped at year end from 13 cents a share to 12 cents a share.

Because the company distributes at least 90% of its taxable income to its stockholders, it qualifies as a REIT under the Internal Revenue Code, thereby avoiding double taxation, once at the corporate level and once at the individual level.

This is a very illiquid stock which is lucky to trade 500 shares a day.

For other high yield REITs, go to WSNN.com.

Author does not own the above stock.

By Stockerblog.comMarket News and Data brought to you by Benzinga APIs

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.