High Dividend 50: Modiv Industrial Inc.

Published on November 12th, 2025 by Felix Martinez

High-yield stocks pay out dividends that are significantly higher than the market average. For example, the S&P 500’s current yield is only ~1.2%.

High-yield stocks can be particularly beneficial in supplementing income after retirement. A $120,000 investment in stocks with an average dividend yield of 5% creates an average of $500 a month in dividends.

Modiv Industrial Inc. (MDV) is part of our ‘High Dividend 50’ series, which covers the 50 highest-yielding stocks in the Sure Analysis Research Database.

We have created a spreadsheet of stocks (and closely related REITs, MLPs, etc.) with dividend yields of 5% or more.

You can download your free full list of all securities with 5%+ yields (along with important financial metrics such as dividend yield and payout ratio) by clicking on the link below:

Next on our list of high-dividend stocks to review is Modiv Industrial Inc. (MDV).

Business Overview

Modiv Industrial Inc. is a real estate investment trust (REIT) that focuses on acquiring, owning, and managing single-tenant industrial properties across the United States. The company’s portfolio primarily consists of mission-critical facilities leased to creditworthy tenants under long-term, triple-net leases—meaning tenants are responsible for property taxes, insurance, and maintenance.

This structure provides Modiv with stable, predictable cash flows, while its focus on industrial assets enables it to benefit from strong demand in the logistics, manufacturing, and e-commerce sectors.

Modiv’s strategy centers on disciplined capital allocation, tenant quality, and diversification across industries and geographies. The company seeks to generate consistent dividend income and long-term value growth by maintaining conservative leverage and targeting assets with built-in rent escalations.

In addition, Modiv emphasizes transparency and shareholder alignment—its management team and employees hold a meaningful ownership stake in the company, reinforcing a focus on sustainable growth and performance.

Source: Investor Relations

The company, the only public REIT focused solely on industrial manufacturing real estate, reported second-quarter 2025 revenue of $11.8 million and a net loss of $2.8 million. Adjusted funds from operations (AFFO) rose 22% year-over-year to $4.8 million, or $0.38 per diluted share, exceeding expectations. The company also renewed a five-year lease with Northrop Grumman in Florida, featuring 2% annual rent increases.

CEO Aaron Halfacre described the quarter as steady and disciplined despite market volatility. He highlighted improving lending conditions, potential acquisition and asset recycling opportunities, and Modiv’s commitment to conservative management.

With a strong balance sheet and a 14-year average lease term, Modiv remains focused on stable income growth and long-term shareholder value through disciplined execution and strategic portfolio management.

Source: Investor Relations

Growth Prospects

Modiv Industrial Inc. is pursuing a growth strategy centered on acquiring high-quality industrial properties, with potential expansion into retail, data centers, and storage assets. While the company’s operating history is relatively short, management aims to build a diversified, income-producing portfolio that enhances adjusted funds from operations (AFFO) per share over time.

Recent acquisitions, such as four industrial and one retail property in 2022, demonstrate Modiv’s intention to scale through disciplined, accretive transactions that strengthen its presence in the industrial real estate sector.

However, Modiv faces near-term challenges that could slow its growth. The company’s high dividend yield makes issuing additional equity less attractive, as the cost of capital may exceed expected investment returns. Similarly, elevated interest rates make debt financing expensive, and preferred equity at an 8% yield adds further pressure.

As a result, Modiv’s growth is expected to remain steady rather than rapid in the medium term, with management likely prioritizing balance sheet stability and consistent dividend payments over aggressive expansion.

Competitive Advantages & Recession Performance

Modiv Industrial Inc. benefits from a focused investment strategy in single-tenant, net-lease industrial properties—an asset class known for stable, long-term cash flows. Its tenants are typically established manufacturers with mission-critical operations, reducing the risk of vacancy and ensuring reliable rental income.

The company’s use of triple-net leases shifts property expenses such as taxes, insurance, and maintenance to tenants, helping protect profit margins and cash flow stability. This disciplined approach allows Modiv to maintain predictable returns and minimize operational volatility compared to more diversified REITs.

During economic downturns, Modiv’s portfolio structure and tenant base provide some resilience, as industrial tenants often prioritize lease continuity to avoid disrupting production and supply chains.

While the company’s small size and limited operating history make it more vulnerable to capital market pressures during recessions, its long lease terms and conservative balance sheet offer some protection. By focusing on essential-use properties and maintaining financial discipline, Modiv is positioned to weather economic slowdowns better than many peers in more cyclical real estate sectors.

Dividend Analysis

Modiv’s dividend is the company’s most compelling feature from an investor’s perspective. Currently yielding 8.0%, it far exceeds the S&P 500’s average of 1.2% and represents one of the highest yields the stock has offered since going public.

The projected payout ratio for 2025 is 85%, which is reasonable for a REIT, though a longer history of consistent payments would provide greater confidence in the dividend’s sustainability. Given this payout ratio, dividends are expected to remain flat through 2030 unless adjusted funds from operations (AFFO) grow faster than anticipated.

Trading at $14.60 per share, Modiv’s price-to-AFFO ratio is just under 10.5, slightly above a five-year target of 10.0, suggesting limited upside from valuation gains. Overall, total returns over the next five years are likely to be driven primarily by the dividend, with mid-to-high single-digit annual returns expected.

Final Thoughts

Modiv is a relatively new monthly dividend stock with a limited operating history, making it difficult to draw definitive conclusions about its performance. Given the current market environment, the company may face challenges executing its growth strategy without risking shareholder dilution.

Based on our assumptions—including flat per-share growth and modest valuation pressures—we estimate the stock could generate annualized returns of approximately 6.0%, driven primarily by its dividend. As a result, we assign Modiv a hold rating.

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