RLJ Lodging Trust
), a real estate investment trust (REIT), has recently declared a
quarterly dividend of 16.5 cents per share for the third quarter of
2012. The dividend is payable in cash on October 15, 2012, to
shareholders of record as on September 28.
HOST HOTEL&RSRT (HST): Free Stock Analysis
RLJ LODGING TR (RLJ): Free Stock Analysis
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The proposed dividend represents a 10.0% year over year increase to
that paid in the year-ago quarter. If the current dividend level is
maintained for the remainder of the year, the annualized dividend
payout of the company would be $0.66 per share.
Based on the closing price of $19.26, the current dividend yield is
fairly decent, at approximately 3.4%. A steady dividend payout
facilitates the long-term strategy of RLJ Lodging Trust to provide
attractive risk-adjusted returns to its stockholders.
Investors looking for high dividend yields are increasingly
favoring REITs like RLJ Lodging Trust. Solid dividend payouts are
arguably the biggest enticement for REIT investors as U.S. law
requires REITs to distribute 90% of their annual taxable income in
the form of dividends to shareholders.
Based in Bethesda, Maryland, RLJ Lodging Trust operates premium
upscale full-service hotels across the U.S. Most of the properties
of the company are located in major urban and dense suburban
markets that have significant barriers to entry. The property
portfolio of the company includes 144 hotels in 20 states and the
District of Columbia, with over 21,300 rooms.
The company strategically invests in premium-branded,
focused-service and compact full-service hotels. Focused-service
hotels generally generate most of their revenue from room rentals,
have limited food and beverage outlets, and require fewer employees
than traditional full-service hotels. Consequently, these hotels
have the potential to generate attractive returns relative to other
conventional hotels with a relatively more efficient operating
model and less volatile cash flows.
We have an Outperform recommendation on RLJ Lodging Trust for the
long term, which currently has a Zacks #2 Rank that translates into
a short-term Buy rating. However, we have a long-term Neutral
recommendation and a Zacks #2 Rank for
Host Hotels & Resorts Inc.
), one of the competitors of RLJ Lodging Trust.