East Group Properties (
, a real estate investment trust (REIT), has recently increased its
quarterly dividend by 2.0% from 52 cents to 53 cents per share,
which equates to an annual dividend payout of $2.12. The dividend
is payable on September 28, 2012 to shareholders of record on
For the past 20 years, the company has paid uninterrupted dividends
to its shareholders, while increasing it 17 times on a trot. The
current dividend represents the 131st consecutive quarterly payout
by East Group.
A steady dividend payout facilitates the long term strategy of East
Group to provide risk-adjusted returns to its shareholders. The
company has also historically promulgated a dividend reinvestment
and direct stock purchase plan through which stockholders may
purchase additional shares of the company by reinvesting some or
all of the cash dividends received on the common shares.
Solid dividend payouts are arguably the best enticement for REIT
investors as U.S. law requires REITs to distribute 90% of their
annual taxable income in the form of dividend to shareholders.
Earlier in the second quarter of 2012, East Group paid cash
dividend of 52 cents per share. The company's dividend payout ratio
to funds from operations was 68% for the last reported quarter.
East Group develops and operates industrial properties in major
Sunbelt markets across the U.S. with an emphasis in the states of
Florida, Texas, Arizona, California and North Carolina. The
company's growth strategy primarily hinges on acquiring leading
business distribution facilities located near major transportation
East Group currently retains a Zacks #3 Rank, which translates into
a short-term Hold rating. We are also maintaining our long-term
Neutral recommendation on the stock. One of its competitors,
Duke Realty Corp (
) also holds a Zacks #3 Rank.
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.
DUKE REALTY CP (DRE): Free Stock Analysis
EASTGROUP PPTYS (EGP): Free Stock Analysis
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