Apartment Investment and Management Company
(
AIV
) - a real estate investment trust (REIT) better known as Aimco -
announced a 20% sequential hike in its quarterly cash dividend
rate. The company will now pay a dividend of 24 cents per share
of Class A Common Stock compared with 20 cents paid in the prior
quarter. The increased dividend will be paid on Feb 28, 2013 to
stockholders of record on Feb 15.
This represents the third dividend raise at Aimco since Jan 2012.
Moreover, on an annualized basis, it reflects an increase of 26%
compared with dividends paid during 2012. Undoubtedly, a steady
dividend payout facilitates the long-term strategy of Aimco to
provide attractive risk-adjusted returns to its stockholders.
Moreover, the dividend hike reflects solid performance and
meticulous execution of strategic plans at Aimco, which is one of
the largest owners and operators of multifamily apartments in the
U.S. Notably, the company is currently repositioning its
portfolio to focus on markets that have better job and rent
growth prospects. Such strategic moves will prove accretive to
its earnings going forward.
Therefore, with strong quarterly results, we believe that the
company is well poised to maintain its growth curve and
simultaneously benefit the shareholders with steadily rising
dividends and hence we remain encouraged.
As a matter of fact, solid dividend payouts are arguably the
biggest attraction for REIT investors as the U.S. law requires
these companies to distribute 90% of their annual taxable income
in the form of dividends to the shareholders.
In addition to Aimco, a number of REIT firms have increased their
dividend payouts in recent times. This includes
AvalonBay Communities Inc.
(
AVB
), which hiked its quarterly dividend by 10.3% to $1.07 per share
earlier this week. Moreover,
Vornado Realty Trust
(
VNO
) increased its quarterly dividend by 5.8% to 73 cents while
DDR Corp.
(
DDR
) raised its quarterly dividend by about 12.5% to 13.5 cents this
month.
Aimco is scheduled to release its fourth-quarter 2012 results on
Feb 7. The Zacks Consensus Estimate for the company's
fourth-quarter FFO (funds from operations) is currently pegged at
50 cents per share. Aimco currently carries a Zacks Rank #3
(Hold).
Note: Fund from operations, a widely used metric to gauge
the performance of REITs, is obtained after adding depreciation
and amortization and other non-cash expenses to net
income.
APARTMENT INVT (AIV): Free Stock Analysis
Report
AVALONBAY CMMTY (AVB): Free Stock Analysis
Report
DDR CORP (DDR): Free Stock Analysis Report
VORNADO RLTY TR (VNO): Free Stock Analysis
Report
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