Income Strategy: 2 Fantastic Dividends For Total Returns

Company Overview - Verizon (VZ) is recognized as a top dividend stock with a 19-year history of paying growing dividends, outperforming the S&P 500 index with a 30% return since the last analysis [7] - Rexford Industrial (REXR) demonstrates strong operating performance with a 49% weighted average lease spread on a cash basis and a 97.3% occupancy rate, reflecting high demand and low supply in its market [3][10] Financial Performance - Verizon's wireless service revenue grew by 3.5% YoY to $19.8 billion, driven by a 12% increase in consumer postpaid phone gross additions, despite total revenue missing estimates [7][10] - Rexford Industrial achieved an 11% YoY increase in FFO per share and is guiding for same property cash NOI growth of 7-8% and FFO per share growth of 6-7% for the year [3][10] Growth Potential - Verizon's management expects wireless service revenue growth of 2.75% this year, supported by pricing actions and growth in fixed wireless access customers [13] - Rexford Industrial has significant mark-to-market leasing potential, with management estimating its overall portfolio-wide leases to be 26% undervalued on a cash basis [3][16] Valuation Metrics - Verizon is currently priced at $40.09 with a forward PE of 8.8x, significantly below its historical PE of 13.6x, indicating potential undervaluation [13] - Rexford Industrial is priced at $49.05 with a forward P/FFO of 20.8, below its historical P/FFO of 28.3, suggesting it is undervalued relative to its historical performance [4][10] Dividend Yield - Verizon offers a 6.6% dividend yield, well-covered by a 58% payout ratio, with expectations for dividend growth to increase as leverage improves [13] - Rexford Industrial provides a 3.4% dividend yield, supported by a 71% payout ratio, with potential for market-beating returns when combined with anticipated FFO/share growth [16]