1 Magnificent High-Yield Stock Down 50% to Buy and Hold Forever

Core Viewpoint - Rexford Industrial has experienced a significant stock price decline, losing half its value, which has resulted in an attractive dividend yield of 4.2% [1] - The decline is primarily attributed to investor sentiment rather than fundamental business issues, as the company continues to grow albeit at a slower pace [2][5] Business Performance - The pandemic-driven shift to online shopping increased demand for warehouse space, benefiting Rexford's industrial assets [4] - Rexford focuses exclusively on industrial properties in Southern California, a strategic location for goods coming from Asia, which has historically supported strong performance [4][7] - Despite the stock price drop, Rexford's business fundamentals remain strong, with new leases signed at rates 25.6% higher than expiring leases and renewal rates up 26.5% [6][8] Market Dynamics - Southern California's industrial real estate market has lower vacancy rates and high barriers to entry, making it a favorable environment for Rexford [7] - The company has slightly increased its full-year adjusted funds from operations (FFO) outlook, indicating ongoing business strength [7] Investment Perspective - The current dividend yield of 4.3% is backed by over a decade of dividend growth, presenting a compelling investment opportunity [8] - The company is viewed as misunderstood by Wall Street, with a strong foundation for continued success in a desirable property market [9][10] - The significant price decline may present a contrarian investment opportunity for long-term holders, despite current market trends favoring other sectors like artificial intelligence [11]