AvalonBay Communities (AVB) Declares $1.65 Dividend

AvalonBay Communities said on February 8, 2023 that its board of directors declared a regular quarterly dividend of $1.65 per share ($6.60 annualized). Shareholders of record as of March 30, 2023 will receive the payment on April 17, 2023. Previously, the company paid $1.59 per share.

At the current share price of $180.37 / share, the stock's dividend yield is 3.66%. Looking back five years and taking a sample every week, the average dividend yield has been 3.30%, the lowest has been 2.52%, and the highest has been 5.25%. The standard deviation of yields is 0.50 (n=237).

The current dividend yield is 0.72 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.72. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

Analyst Price Forecast Suggests 5.85% Upside

As of February 10, 2023, the average one-year price target for AvalonBay Communities is $190.93. The forecasts range from a low of $161.60 to a high of $296.10. The average price target represents an increase of 5.85% from its latest reported closing price of $180.37.

The projected annual revenue for AvalonBay Communities is $2,799MM, an increase of 9.60%. The projected annual EPS is $5.96, a decrease of 32.29%.

What is the Fund Sentiment?

There are 1441 funds or institutions reporting positions in AvalonBay Communities. This is a decrease of 24 owner(s) or 1.64% in the last quarter. Average portfolio weight of all funds dedicated to AVB is 0.51%, a decrease of 0.26%. Total shares owned by institutions increased in the last three months by 3.13% to 146,088K shares. The put/call ratio of AVB is 1.47, indicating a bearish outlook.

What are large shareholders doing?

VGSIX - Vanguard Real Estate Index Fund Investor Shares holds 6,340K shares representing 4.54% ownership of the company. In it's prior filing, the firm reported owning 6,409K shares, representing a decrease of 1.10%. The firm decreased its portfolio allocation in AVB by 2.50% over the last quarter.

Norges Bank holds 5,936K shares representing 4.25% ownership of the company. No change in the last quarter.

Price T Rowe Associates holds 5,658K shares representing 4.05% ownership of the company. In it's prior filing, the firm reported owning 5,466K shares, representing an increase of 3.40%. The firm increased its portfolio allocation in AVB by 27.28% over the last quarter.

Principal Financial Group holds 4,849K shares representing 3.47% ownership of the company. In it's prior filing, the firm reported owning 5,019K shares, representing a decrease of 3.51%. The firm decreased its portfolio allocation in AVB by 56.55% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,165K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 4,114K shares, representing an increase of 1.22%. The firm increased its portfolio allocation in AVB by 0.06% over the last quarter.

Avalonbay Communities Background Information
(This description is provided by the company.)

The Company is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas primarily in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and Northern and Southern California, as well as in the Company's expansion markets consisting of Southeast Florida and Denver, Colorado.

This story originally appeared on Fintel.