Latest news with #FederalRealty
Yahoo
2 days ago
- Business
- Yahoo
Dividend King Federal Realty Has a High Yield and Industry-Leading Business
Federal Realty has the longest dividend increase streak in the REIT sector. The company focuses on quality over quantity and is a skilled developer and redeveloper. Federal Realty's dividend yield is notably higher than the REIT industry average. 10 stocks we like better than Federal Realty Investment Trust › Federal Realty (NYSE: FRT) is not the largest real estate investment trust (REIT) you can buy. It isn't even the largest REIT in its strip mall niche. It actually has a fairly small collection of properties in its portfolio. And yet it stands head and shoulders above every other REIT when it comes to its dividend. Here's why now is a good time to consider adding Federal Realty and its industry-leading business to your portfolio. Federal Realty owns strip malls and mixed-use properties, which generally include apartments and offices in the mix with retail. Some of the REIT's individual properties are quite large developments with multiyear projects on them. Others are simple strip malls where locals go to meet their everyday needs, like buying groceries or getting a haircut. From this perspective, Federal Realty isn't particularly differentiated from its competitors. That changes when you see that it only owns around 100 properties, which is generally a much smaller portfolio than its closest peers. However, those properties are particularly well located, with Federal Realty's assets having a higher average income around them and higher average population density. In other words, its portfolio is focused in wealthy areas with lots of residents nearby, which is exactly where retailers want to be located. The strength of Federal Realty's portfolio today is highlighted by its occupancy rates. After dipping during the coronavirus pandemic, they are now back above that level and closing in on 20-year highs. Occupancy ended the first quarter of 2025 at 93.6% but is expected to close in on 95% as the year progresses. Even during the pandemic, when non-essential businesses were closed by the government in an attempt to slow the spread of COVID-19, Federal Realty's occupancy didn't fall below 89%. The real story, however, is Federal Realty's dividend, which has been increased annually for 57 consecutive years. That makes the REIT a Dividend King, which alone is an impressive feat. But there's two more nuances here. First, Federal Realty has the longest dividend streak of any REIT. Second, it is the only REIT that is a Dividend King. Having a small, well-positioned portfolio has clearly paid off. Federal Realty didn't just buy 100 or so properties 57 years ago and sit on them for half a century. It is actually a quite active buyer and seller of assets. The key to its long-term success is what it does with the assets it buys. Usually Federal Realty buys well-located properties that need a little love and attention. That could be as simple as a coat of paint and more focus on tenant quality. A refresh of a property's exterior to make it look up to date goes a long way in attracting customers and tenants. But often the capital investments being made are far more extensive. Federal Realty will usually add to the properties it buys in some way. That can include adding apartments and offices above street-level retail space. It can involve tearing down an entire property and rebuilding it from scratch. Or it can be as simple as getting the permitting to make changes, which alone adds value to a property. When Federal Realty believes that it can sell a property for an attractive price, it will do so and then go on the hunt for another property that it can work on to improve its value over time. In other words, Federal Realty's portfolio is in a near-constant state of flux. And the inherent push is for the improvement in the quality of its portfolio. Management knows from experience that well maintained and located properties attract tenants, customers, and buyers, and that is the REIT's guiding star. Given the quality of Federal Realty's business model, highlighted by its Dividend King status, the shares don't go on sale very often. Today the dividend yield is 4.6%, which is notably higher than the S&P 500 index's (SNPINDEX: ^GSPC) 1.3% and the average REIT's 4.1%. Federal Realty's yield is also near the high side of the range over the past decade. If you are looking for a reliable dividend backed by a high-performing business, Federal Realty should probably be on your short list today. Before you buy stock in Federal Realty Investment Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Federal Realty Investment Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Reuben Gregg Brewer has positions in Federal Realty Investment Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Dividend King Federal Realty Has a High Yield and Industry-Leading Business was originally published by The Motley Fool
Yahoo
29-05-2025
- Business
- Yahoo
3 Elite High-Yield Dividend Stocks Down 8% to 27% That Have Hiked Their Payouts for More than 50 Years in a Row
Federal Realty has increased its dividend by a REIT-leading 57 straight years. Johnson & Johnson has hiked its dividend for 63 years in a row. PepsiCo recently extended its dividend growth streak to 53 consecutive years. 10 stocks we like better than Federal Realty Investment Trust › Some of the best dividend stocks in the world are on sale right now. Shares of Federal Realty Investment Trust (NYSE: FRT), Johnson & Johnson (NYSE: JNJ), and PepsiCo (NASDAQ: PEP) are currently down 8% to 27% from their 52-week highs. Those sell-offs have pushed their dividend yields even higher. With elite records of dividend growth -- each has delivered more than 50 years of consecutive annual payment increases -- they are very attractive investment opportunities right now. Shares of Federal Realty Investment Trust have declined nearly 20% from their 52-week high. That slump has pushed the real estate investment trust's (REIT) dividend yield up to more than 4.5%. That's over three times higher than the S&P 500's sub-1.5% dividend yield. Federal Realty has increased its dividend for 57 straight years. That's the longest record in the REIT industry. It qualifies the company for the elite group of Dividend Kings, companies with 50 or more years of increasing their dividend payments. A big factor driving the REIT's consistent growth is its focus on quality over quantity. It has a concentrated portfolio of high-quality retail-based properties in strategically selected metro markets, primarily major cities along the coasts. It focuses on owning open-air shopping centers and mixed-use properties in first-ring suburban locations because they have a high density of high-income consumers. That makes its properties highly attractive to retailers, driving high occupancy levels and steady rent growth. Federal Realty routinely invests capital to enhance its portfolio by redeveloping existing properties or acquiring higher-quality properties, often funding these investments by selling lower-quality locations. Shares of healthcare giant Johnson & Johnson have shed more than 8% of their value from their recent peak. That has helped nudge the company's dividend yield up to nearly 3.5%. The company also increased its dividend payment by 4.8% earlier this year, extending its growth streak to 63 consecutive years. Johnson & Johnson is arguably the healthiest high-yielding dividend stock in the world. The company has a pristine AAA credit rating, higher than the U.S. government. It backs that elite bond rating with a strong balance sheet and robust free cash flow. The company ended the first quarter with only $13.5 billion of net debt, or $38.8 billion of cash and $52.3 billion of debt. That's a small amount considering its nearly $370 billion market cap. The healthcare company also generates about $20 billion in free cash flow each year, even though it's one of the world's top investors in research and development (R&D) at over $17 billion last year. It produces more than enough cash to cover its nearly $12 billion annual dividend outlay. The company's heavy investments in R&D and inorganic spending, totaling over $30 billion in acquisitions and other external investments over the past few quarters, should drive continued earnings growth. That puts Johnson & Johnson in a strong position to continue increasing its payout. PepsiCo's stock has gotten walloped, falling more than 27% from its 52-week high. One benefit of that sell-off is that the beverage and snacking giant's dividend yield has risen well past 4%. The company also recently hiked its payout by another 5%, extending its dividend growth streak to 53 straight years. The company produces a lot of cash, which enables it to invest in growing its business and pay its lucrative dividend. It spends money to develop innovative products, increase manufacturing capacity, and improve productivity. PepsiCo expects these investments to drive 4% to 6% annual organic revenue growth and high single-digit annual earnings-per-share growth. On top of that, the company has a strong balance sheet, which enables it to make strategic acquisitions to enhance its growth. PepsiCo recently closed its $1.7 billion purchase of Poppi as part of its ongoing portfolio transformation toward healthier products. The company's growth investments should give it plenty of pop to continue boosting its shareholder payout. Federal Realty, Johnson & Johnson, and PepsiCo are among the dividend elite by raising their payouts for more than 50 straight years. With their share prices down and yields up, they look like very attractive investment opportunities right now. Income-focused investors can lock in a higher-yielding income stream that should continue growing in the decades ahead. Before you buy stock in Federal Realty Investment Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Federal Realty Investment Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt DiLallo has positions in Johnson & Johnson and PepsiCo. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy. 3 Elite High-Yield Dividend Stocks Down 8% to 27% That Have Hiked Their Payouts for More than 50 Years in a Row was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
24-05-2025
- Business
- Globe and Mail
This Stock Has Increased Its Dividend for 57 Years in a Row
Some real estate investment trusts, or REITs, have multidecade track records of increasing their dividends, but no REIT's streak is more impressive than that of Federal Realty Investment Trust (NYSE: FRT). However, a streak of dividend raises alone doesn't make a great investment, so in this video, longtime contributors Matt Frankel and Tyler Crowe discuss the company and what they think about the business now. *Stock prices used were the morning prices of May 22, 2025. The video was published on May 24, 2025. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Should you invest $1,000 in Federal Realty Investment Trust right now? Before you buy stock in Federal Realty Investment Trust, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Federal Realty Investment Trust wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Matt Frankel has no position in any of the stocks mentioned. Tyler Crowe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Matthew Frankel is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Yahoo
22-05-2025
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than AGNC Investment 10 Years From Now
Over the past decade, AGNC Investment has had a very clear, downward dividend trend. Retail-focused Federal Realty is a Dividend King that uses both internal and external growth levers. Rexford Industrial is a hyper-focused industrial REIT, but it has skills that set it apart from its competitors. 10 stocks we like better than AGNC Investment Corp. › AGNC Investment (NASDAQ: AGNC) has a massive 15.5% dividend yield, which is why it pops up on the screens of dividend investors. Before jumping at what looks like a huge income opportunity, you need to examine the real estate investment trust's (REIT's) history. You'll likely be better off with lower-yielding REITs like Federal Realty (NYSE: FRT) and Rexford Industrial (NYSE: REXR) if generating reliable income is your goal. AGNC Investment is a mortgage REIT that lives up to its goal of providing investors with an attractive total return. If total return is your goal, you might want to consider it. But most dividend investors aren't looking for total return, which requires dividends to be reinvested. Dividend investors are usually looking to use their dividends to pay for living expenses. It takes one single graph to highlight the problem. Notice that the total return line above is rising even as the dividend is falling. AGNC Investment's share price follows the dividend lower. If you had reinvested the dividend, you would have ended up OK. But if you'd spent the dividends this mortgage REIT generated, you would have ended up with less income and less capital. Given the huge 15.5% dividend yield, this dynamic doesn't seem likely to change. So AGNC Investment's huge yield probably isn't as attractive as it seems. You will probably find the still attractive yields on offer from Federal Realty and Rexford Industrial a lot more to your liking if you are a dividend investor. Federal Realty is a Dividend King, with over five decades of annual dividend increases behind it. Rexford is a much younger company, but it still has a 12-year dividend streak that it's working on growing. That's much more attractive than AGNC Investment's history of dividend cuts. Federal Realty's dividend yield is currently around 4.5%, while Rexford is offering a yield of 4.8%. Federal Realty is focused on retail assets, specifically strip malls and mixed-use developments built around retail. Rexford Industrial owns industrial assets, but is hyper-focused on the supply-constrained Southern California market. Both have proven very capable on two fronts. They both use acquisitions to grow. But redevelopment is a core aspect of their acquisition approach, as they both excel at improving their portfolios by investing in them to make them more valuable over time. In comparison, AGNC Investment owns mortgage securities that have been pooled into bond-like investments. There's no way to improve the value of mortgage securities via capital investment. In fact, AGNC Investment is more like a mutual fund than an operating business. As long as the dividend payment remains as large as it is, the value of the mortgage REIT is likely to keep shrinking because it's paying out so much of the capital it uses to invest. But Federal Realty's and Rexford's businesses will keep growing, thanks to their investment and redevelopment efforts. AGNC Investment isn't a bad company -- it just has a different focus than that of most dividend investors. But if you're looking for a total return investment, it could be a good option for your portfolio. For dividend investors, meanwhile, both Federal Realty and Rexford Industrial are likely to work out better over the long term. Even here, though, there is a material difference. Federal Realty is a slow and steady tortoise. Its dividend has grown just 26% over the past decade (for reference, AGNC's dividend declined by 40%). Rexford Industrial's dividend has grown by more than 250% over that same span. So Federal Realty is more appropriate for conservative dividend investors, while Rexford will likely be appreciated most by dividend growth investors. All that said, Federal Realty and Rexford are both a little out of favor on Wall Street right now, which is likely a long-term buying opportunity. Sure, tariffs and economic concerns will affect each over the near term. But their strong business models, including well-honed redevelopment skills, set them apart from the pack and set them up to keep growing for years to come once the current uncertainty passes. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Federal Realty Investment Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than AGNC Investment 10 Years From Now was originally published by The Motley Fool
Yahoo
22-05-2025
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than AGNC Investment 10 Years From Now
Over the past decade, AGNC Investment has had a very clear, downward dividend trend. Retail-focused Federal Realty is a Dividend King that uses both internal and external growth levers. Rexford Industrial is a hyper-focused industrial REIT, but it has skills that set it apart from its competitors. 10 stocks we like better than AGNC Investment Corp. › AGNC Investment (NASDAQ: AGNC) has a massive 15.5% dividend yield, which is why it pops up on the screens of dividend investors. Before jumping at what looks like a huge income opportunity, you need to examine the real estate investment trust's (REIT's) history. You'll likely be better off with lower-yielding REITs like Federal Realty (NYSE: FRT) and Rexford Industrial (NYSE: REXR) if generating reliable income is your goal. AGNC Investment is a mortgage REIT that lives up to its goal of providing investors with an attractive total return. If total return is your goal, you might want to consider it. But most dividend investors aren't looking for total return, which requires dividends to be reinvested. Dividend investors are usually looking to use their dividends to pay for living expenses. It takes one single graph to highlight the problem. Notice that the total return line above is rising even as the dividend is falling. AGNC Investment's share price follows the dividend lower. If you had reinvested the dividend, you would have ended up OK. But if you'd spent the dividends this mortgage REIT generated, you would have ended up with less income and less capital. Given the huge 15.5% dividend yield, this dynamic doesn't seem likely to change. So AGNC Investment's huge yield probably isn't as attractive as it seems. You will probably find the still attractive yields on offer from Federal Realty and Rexford Industrial a lot more to your liking if you are a dividend investor. Federal Realty is a Dividend King, with over five decades of annual dividend increases behind it. Rexford is a much younger company, but it still has a 12-year dividend streak that it's working on growing. That's much more attractive than AGNC Investment's history of dividend cuts. Federal Realty's dividend yield is currently around 4.5%, while Rexford is offering a yield of 4.8%. Federal Realty is focused on retail assets, specifically strip malls and mixed-use developments built around retail. Rexford Industrial owns industrial assets, but is hyper-focused on the supply-constrained Southern California market. Both have proven very capable on two fronts. They both use acquisitions to grow. But redevelopment is a core aspect of their acquisition approach, as they both excel at improving their portfolios by investing in them to make them more valuable over time. In comparison, AGNC Investment owns mortgage securities that have been pooled into bond-like investments. There's no way to improve the value of mortgage securities via capital investment. In fact, AGNC Investment is more like a mutual fund than an operating business. As long as the dividend payment remains as large as it is, the value of the mortgage REIT is likely to keep shrinking because it's paying out so much of the capital it uses to invest. But Federal Realty's and Rexford's businesses will keep growing, thanks to their investment and redevelopment efforts. AGNC Investment isn't a bad company -- it just has a different focus than that of most dividend investors. But if you're looking for a total return investment, it could be a good option for your portfolio. For dividend investors, meanwhile, both Federal Realty and Rexford Industrial are likely to work out better over the long term. Even here, though, there is a material difference. Federal Realty is a slow and steady tortoise. Its dividend has grown just 26% over the past decade (for reference, AGNC's dividend declined by 40%). Rexford Industrial's dividend has grown by more than 250% over that same span. So Federal Realty is more appropriate for conservative dividend investors, while Rexford will likely be appreciated most by dividend growth investors. All that said, Federal Realty and Rexford are both a little out of favor on Wall Street right now, which is likely a long-term buying opportunity. Sure, tariffs and economic concerns will affect each over the near term. But their strong business models, including well-honed redevelopment skills, set them apart from the pack and set them up to keep growing for years to come once the current uncertainty passes. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Federal Realty Investment Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than AGNC Investment 10 Years From Now was originally published by The Motley Fool
