UPDATE. Recent changes, with a few notes from AI. Added those marked. Going for more safety in the retail sector with some adds and some trimming. Sold DOC at a loss, Healthpeak (R&D labs) acquired DOC and it turned out to be poor for DOC (med office). They stole the DOC stock symbol too.
FCPT. leasing high-quality restaurant and retail properties. Originally spun off from Darden Restaurants (the parent of Olive Garden) in 2015, it has evolved into a diversified, e-commerce-resistant income play.
1 FCPT is widely regarded as a "dividend contender" due to its consistent payout growth. 5.8% div
2 The board recently increased the quarterly dividend by 3.2% to $0.3665 per share (effective Jan 2026).
3 Sustainability: The REIT maintains a healthy balance sheet with investment-grade ratings (BBB/Baa3).
I posted in november.
UDR is viewed as a "balanced" play for 2026. Unlike pure Sun Belt plays (like MAA) or pure Coastal plays (like EQR), UDR maintains a diversified portfolio across both regions, which is helping it navigate the current market volatility. UDR’s strength lies in its 60,000+ unit portfolio, which is strategically split to hedge against regional downturns:
1 Northeast/Mid-Atlantic (40% of NOI): This is currently their "engine room," benefiting from high demand and very little new supply in cities like Boston and New York.
2 West Coast (35% of NOI): Performance is rebounding in the Bay Area and Seattle as tech hiring stabilizes and AI-sector growth drives local demand.
3 Sun Belt (25% of NOI): This remains the "drag" on the portfolio due to the lingering effects of oversupply, though UDR expects this region to bottom out by mid-2026.
GTY. Their portfolio is focused on essential-service retail. Convenience Stores & Gas Stations, with Car Washes & Automotive Service a growing segment of their diversification strategy.
GTY is widely considered a "Dividend Achiever" due to its long history of consistent raises. Current Yield: 6.3% They have increased their dividend for over 10 consecutive years. The payout is well-covered by AFFO.
PECO 3.5% div. one of the nation’s largest owners and operators of grocery-anchored shopping centers. Recession Resistance because their centers are anchored by leading grocers (Kroger, Publix, Albertsons). They benefit from high, recurring foot traffic even during economic downturns. They reported a 93% tenant retention rate in 2025, which keeps "Tenant Improvement" costs low and cash flow predictable. PECO is currently seeing massive "rent spreads" (the increase in rent when a new tenant takes over a space), averaging 34% on new leases. And see my Jan 5 posting here.
UPS 5.6% div and a good story.
UPS is in the process of downsizing its network of facilities in the U.S. to account for its ongoing plan to greatly reduce Amazon package volume. While this is hurting revenue right now, it allows the company to cut costs in multiple ways. The buildings being closed tend to be old and require extensive maintenance spending. As UPS CEO Carol Tomé noted during the fourth-quarter earnings , those outsize maintenance expenses disappear when these legacy facilities are shut down. Beyond those direct cost savings, UPS is realizing additional benefits by routing package volume to other facilities that have already been automated. UPS has deployed a variety of robots and automated systems across the 127 facilities it has automated to date.. Another 24 facilities will be automated in 2026... the payoff is significant. Tomé said that the cost per piece in automated buildings is 28% lower than in conventional, non-automated buildings. Automation is one reason, along with the plan to wean itself off Amazon packages, that UPS can slash its workforce. UPS eliminated 48,000 positions in 2025, and it plans to slash another 30,000 positions this year, largely through attrition and a voluntary separation program for full-time drivers.
CTSH - mentioned here by others. Just a small amount.
Been considering a few others, but waiting for earnings results.
Grommit.
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