Hunting for dividend stocks? I would love to get this 6%+ yielding stock in a heartbeat!

I learned that dividend stocks come in all shapes and sizes. One FTSE 250 pick that caught my attention recently Urban Logistics REIT share price (LSE: SHED).

Here's why I'll buy stocks next time I have money to invest.

Last mile delivery

As the name suggests, Urban is established as a real estate investment trust (REIT). This means that if the favorable tax conditions are changed, it should return 90 percent of the profit to the shareholders. This makes it an attractive prospect from a dividend perspective, to me at least.

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of tax advice.

Urban specializes in warehousing and facilities, but specializes in last-mile delivery products. This helps businesses with online and e-commerce stores to cater to their customers, and ensure that they can fulfill orders effectively.

Stocks moved up and down like a roller coaster. Over the 12-month period, the shares have gained 3%, from 116p this time last year, to current levels of 120p. Economic turmoil has hurt the real estate market, but more on that later.

Good stuff

To start with the positives, I am inspired by Urban's modus operandi, and the fact that it affects the ever-growing e-commerce sector. Storage has generally grown significantly in recent years due to increased demand. However, online shopping and changing consumer habits mean that demand for these last mile delivery locations is outstripping supply. There are currently no signs of this slowing down. This could mean good news for Urban's earnings, and could translate to increased shareholder returns.

If we talk about returns, the annual yield is 6.2%. In context, i FTSE 100 average is 3.5%. However, I understand that benefits are not guaranteed. Also, the company has what appears to be a strong balance sheet, as stated in its latest FY24 report. This can help with future growth and shareholder return plans.

Let's break down the key points I took away from the report, which was released in June. The total rental income increased compared to last year by more than 8%. Most importantly, the business was able to make a profit, compared to last year's loss. paid a dividend of 7.6 %.

Potential risks

From a bearish perspective, I have to admit the economic turmoil still worries me. As we have seen recently, high interest rates present a problem. They may impact rent collection, increase the likelihood of defaults, and make debt management less expensive. Also, net asset values ​​(NAVs) have also been reduced. We're not out of the woods yet, and I'll be watching for progress.

Another issue I'll be looking at is Urban's tendency to buy for growth. Adoption is good if it works. However, if they don't, they can have huge financial losses and hurt investors' feelings.

Overall, there's a lot to like about Urban Logistics, in my opinion. A successful sector with future growth, an attractive rate of return on offer, and excellent recent results helped me make my investment decision today.