The Motley Fool

Expensive but exceptional! A 4.6% dividend yield I’d buy today and hold for 10 years

Image source: Getty Images.

I recently celebrated Tritax Big Box’s brilliant growth outlook, one that’s built on an exploding e-commerce sector. Even though online retail volumes have suffered of late due to Brexit uncertainty, the long-term picture for internet retailers remains pretty solid.

If you’re not convinced, though, why not take a look at Tritax Eurobox (LSE: EBOX) instead?

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

That aforementioned piece discussed a report co-authored by creative agency We Are Social and social media management platform Hootsuite. It shows that UK online sales continue to rise at a healthy rate despite massive political and economic uncertainty. And it’s a report that happily — at least for Tritax Eurobox and its investors — shows that internet sales keep ballooning on the other side of the Channel too.

Continental colossus

In particular, the co-authored Global Digital Report 2019 shows that the e-commerce signals in one of Tritax Eurobox’s markets are especially strong: Germany.

The company has more big-box assets in the Central European nation than in any other country, boasting sites in Frankfurt, Bremen, Bochum, Wunstorf and Hanover. According to the report, the total e-commerce market there is now worth more than $70.4bn. It rose 9% year on year in 2019 and outpaced the growth we saw here in the UK.

Some 81% of internet users in Germany have bought something online in the past month, the report added. This was ahead of the global average of 75% and the joint-third highest entry on the list (along with the UK, incidentally). But Tritax Eurobox’s other major territory of Poland was also high on the list and beat the global average with 76%.

Get in Pole position

Indeed, the company’s strong presence within Polish borders makes it particularly exciting. Rocketing economic growth in and around Central and Eastern Europe, and consequently rising e-commerce levels, are among the reasons I bought shares in packaging giant DS Smith.

And latest data from the World Bank shows why this was a sound idea. The breakneck growth of recent years is expected to slow in the medium term, sure. But estimates still put Poland’s likely GDP growth for 2020 and 2021 at a chunky 3.6% and 3.3% respectively. Compare this to the rises of around 1.5% forecast for the eurozone and for the UK in the corresponding periods.

What’s more, Tritax Eurobox has made expansion in Poland one of its strategic priorities. Just last week it spend €51.8m to acquire two brand new logistics spaces and development land in Stryków. These add to the company’s existing cluster of assets in and around Łódź, a region that sits slap bang in the middle of the country.

Tritax Eurobox doesn’t come cheap. At current prices it trades on a forward P/E ratio of 27.1 times. But I consider this to be a fair reflection of the firm’s exceptional structural opportunities. Besides, a monster 4.6% corresponding dividend yield helps to take the edge off that high P/E number.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.