Taubman Centers Inc.
) announced an 8.1% hike in its quarterly cash dividend rate. The
company will now pay a dividend of 50 cents per share, up from
46.25 cents paid in the prior quarter. The increased dividend
will be paid on Mar 29, 2013 to stockholders of record on Mar 18.
Taubman has established an impressive track record of
conservative capital management and cash returns to shareholders
in the form of steady dividend. It has never slashed its common
dividend since it went public in 1992 and has in fact hiked its
dividend 16 times since then.
Michigan-based Taubman Centers Inc. is a real estate investment
trust (REIT), which is engaged in the ownership, management
and/or leasing of 27 regional, super-regional and outlet shopping
centers in the U.S. and Asia.
Taubman has a solid portfolio of the best-in-class retail malls
that generates robust mall tenant sales. Acquisitions of
favorably situated assets are expected to be accretive to its top
line going forward. Also, the company has a healthy balance sheet
with minimal debt maturities and adequate liquidity.
Moreover, last month, Taubman came up with an impressive fourth
quarter and full year 2012 earnings results, primarily driven by
increase in rents and robust occupancy levels. As such, the
company is well poised to maintain its growth curves and
simultaneously benefit the shareholders with steadily rising
In addition to Taubman, many other REITs have raised their
dividends in the recent months. Recently,
Agree Realty Corporation
) announced a 2.5% hike in its quarterly cash dividend rate,
while in February,
Simon Property Group Inc.
) raised its dividend by 4.5% sequentially and
BRE Properties Inc.
) declared a 2.6% sequential hike in its quarterly cash dividend.
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 shareholders.
Taubman currently retains a Zacks Rank #2 (Buy).
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