The Zacks Analyst Blog Highlights: Apartment Investment and Management, AvalonBay Communities, Vornado Realty Trust and DDR
CHICAGO, Feb. 4, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apartment Investment and Management Company (NYSE: AIV), AvalonBay Communities Inc. (NYSE: AVB), Vornado Realty Trust (NYSE: VNO) and DDR Corp. (NYSE: DDR).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday's Analyst Blog:
Dividend Hike at AIMCO
Apartment Investment and Management Company (NYSE: AIV) – a real estate investment trust (REIT) better known as Aimco – announced a 20% sequential hike in its quarterly cash dividend rate. The company will now pay a dividend of 24 cents per share of Class A Common Stock compared with 20 cents paid in the prior quarter. The increased dividend will be paid on Feb 28, 2013 to stockholders of record on Feb 15.
This represents the third dividend raise at Aimco since Jan 2012. Moreover, on an annualized basis, it reflects an increase of 26% compared with dividends paid during 2012. Undoubtedly, a steady dividend payout facilitates the long-term strategy of Aimco to provide attractive risk-adjusted returns to its stockholders.
Moreover, the dividend hike reflects solid performance and meticulous execution of strategic plans at Aimco, which is one of the largest owners and operators of multifamily apartments in the U.S. Notably, the company is currently repositioning its portfolio to focus on markets that have better job and rent growth prospects. Such strategic moves will prove accretive to its earnings going forward.
Therefore, with strong quarterly results, we believe that the company is well poised to maintain its growth curve and simultaneously benefit the shareholders with steadily rising dividends and hence we remain encouraged.
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 the shareholders.
In addition to Aimco, a number of REIT firms have increased their dividend payouts in recent times. This includes AvalonBay Communities Inc. (NYSE: AVB), which hiked its quarterly dividend by 10.3% to $1.07 per share earlier this week. Moreover, Vornado Realty Trust (NYSE: VNO) increased its quarterly dividend by 5.8% to 73 cents while DDR Corp. (NYSE: DDR) raised its quarterly dividend by about 12.5% to 13.5 cents this month.
Aimco is scheduled to release its fourth-quarter 2012 results on Feb 7. The Zacks Consensus Estimate for the company's fourth-quarter FFO (funds from operations) is currently pegged at 50 cents per share. Aimco currently carries a Zacks Rank #3 (Hold).
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.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Zacks Investment Research
800-767-3771 ext. 9339
SOURCE Zacks Investment Research, Inc.