Quick Take: Dividend-Paying IPOs
NRG Yield is expected to trade under the symbol NRG after going public with its planned offering size of $392 million. While Gaskins suggested the financials are a little dicey, the company has some unique prospects -- most notably, a solar plant out in California that was finished in June and is expected to be online in October.
While this should be a significant source of revenue, the 6% payout ratio is what will likely draw investors in. Adding to it, the company expects to raise the dividend 20% by the end of 2014.
Also in California, Rexford Industrial Realty, which is expected to trade under the symbol REXR, is looking to IPO with an offering size of $224 million. With a 3.5% yield, it's about in line with other industrial REITs. However, Gaskins said he is worried about the lack of growth in the industry and because of this he is "neutral" going into the event.
Finally, Physicians Realty Trust has a $100 million offering and is in the medical REIT space. The company, which will trade under the symbol DOC, might sound more attractive than it actually is, he said. Gaskins pointed out that by only having 85% of its properties leased, demand isn't all that strong.
The federal health insurance plan nicknamed "Obamacare" could eventually force doctors out of their own practices and into hospitals and bigger operations. With its annual and quarterly revenue down 7% and 4%, respectively, Gaskins says he will avoid Physicians Realty Trust.
-- Written by Bret Kenwell in Petoskey, Mich.