Looking to add a robust stock to your dividend portfolio? Consider this gem in the large-cap equity Real Estate Investment Trust (eREIT) space that we’ve recently added to our Best Dividend Stocks model portfolio.
With supply expected to outstrip demand in some apartment rental markets of the country, the REIT has come under pressure. This is evident from its YTD performance, as it is down nearly 13% compared to S&P500’s 17% increase.
However, the REIT is likely to benefit from elevated mortgage rates, turning some potential homeowners into tenants and also forcing some existing tenants to continue renting. Additionally, the REIT’s well-diversified Sun Belt-focused portfolio and its eye on driving margins via its robust property redevelopment pipeline and smart home technology implementations are likely to work in its favor.
The stock comes with an attractive forward dividend yield of 4.11%, putting it in the top 40% of dividend-yielding stocks. While the eREIT industry averages a yield of 5.7%, what sets this stock apart is its impressive 13-year track record of dividend increases, ranking it in the top 10% of all dividend stocks. Future hikes in dividends are also anticipated.
Financially robust, the stock has shown a 3-year dividend per share compounded annual growth rate (CAGR) of 23%, which is among the top 20% of all dividend stocks.
For those concerned about market volatility, the stock’s beta of 0.75 means it’s less correlated with the broader equity markets, offering an added layer of diversification for your portfolio.
If you’re eyeing the next payout, mark October 12 on your calendar; the stock will go ex-dividend, offering a non-qualified dividend of $1.400 per share, unchanged from its previous distributions.
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 28, 2023.
Dive deeper into our comprehensive stock analysis that follows to understand how this pick optimizes for an equal blend of Yield Attractiveness, Dividend Safety, Returns Potential, and Returns Risk.