If you’re a dividend growth investor, you won’t want to miss out on one well-covered large-cap Equity Real Estate Investment Trust (eREIT) that has firmly held its position in our Best Dividend Growth Stocks model portfolio.
This powerhouse has shown an impressive three-year dividend Compound Annual Growth Rate (CAGR) of 64%, putting it in the top 20% of all dividend stocks. This is an essential factor when optimizing for Returns Potential via dividend growth.
The REIT has been defying odds amidst an uncertain economic environment, with its focus on single-family rental units working in its favor this year. Year-to-date, this stock has outperformed both the broader market and its industry. It has returned 18% as opposed to the S&P 500’s 17% and the eREIT industry’s -1%.
However, investors should note that a softening economy could impact the company’s leasing activity, occupancy rate and rental rate growth.
At the same time investors should be happy to know that this eREIT comes with a Beta of 0.69, suggesting low correlation with equity markets. This characteristic can serve as a diversification tool for your equity portfolio, aligning with the criteria of Dividend Safety and mitigating Returns Risk.
Its next payout remains unchanged at a non-qualified $0.220 per share. The ex-dividend date was September 14, with a pay date set for September 29. This payout aligns with our focus on Yield Attractiveness, another cornerstone in our recommendation process.
We also take into account the growth drivers and financial results discussed by the company management during their Q2 2023 earnings call held on July 30, 2023.
Stay tuned for an in-depth analysis that delves into why this stock is a must-have in any dividend growth investor’s portfolio.