Vornado Realty Trust (
- a leading real estate investment trust (REIT) - hiked its
quarterly dividend substantially from 36 cents to 73 cents. The
new dividend is payable on Feb 19, 2013 to stockholders of record
as of Jan 28, 2013.
This represents Vornado's second dividend increase since Sep
2012. If the current dividend is maintained for the remainder of
the year, the annualized dividend payout of the company would be
$2.92 per share.
This dividend hike reflects the company's continued robust
performance, backed by disciplined acquisition policy and a
diligent execution of its strategic plan. Based on the closing
price of $84.63 as on Jan18, 2012, the proposed annual dividend
affirms a yield of 3.45%. A steady dividend payout facilitates
the long-term strategy of Vornado to provide attractive
risk-adjusted returns to its stockholders.
Lately, a number of REIT firms have been observed increasing
their dividend payouts. Earlier this month, one of Vornado's
DDR Corp. (
- hiked its quarterly dividend by about 12.5% to 13.5 cents.
Host Hotels & Resorts, Inc. (
- the largest lodging REIT - increased its fourth-quarter
dividend payout by 80% year over year to 9 cents per. Another
RLJ Lodging Trust (
, also increased its quarterly dividend by 24.0% to 20.5 cents
Solid dividend payouts are arguably the biggest enticement for
REIT investors as the U.S. law requires these to distribute 90%
of their annual taxable income in the form of dividends to the
We are impressed with the company's dedication towards
continuously enhancing the shareholders' value. Vornado has
long been focusing on increasing its ownership stake in upscale
properties and acquiring premium assets. These efforts have
enabled the company to strengthen the balance sheet and generate
considerable cash flow for portfolio enhancement as well as
increase the cash distribution to its shareholders.
Vornado currently carries a Zacks Rank #3 (Hold).
DDR CORP (DDR): Free Stock Analysis Report
HOST HOTEL&RSRT (HST): Free Stock Analysis
RLJ LODGING TR (RLJ): Free Stock Analysis
VORNADO RLTY TR (VNO): Free Stock Analysis
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