From Yahoo Finance: 2025-03-23 07:45:00

Federal Realty (NYSE: FRT) is a standout in the REIT sector for increasing its dividend annually for 57 consecutive years. With a focus on quality over quantity, owning only 100 assets, its properties have higher population densities and incomes than peers. Is it worth buying at under $100 per share?

The company’s business model includes development and redevelopment, focusing on mixed-use assets and strategic acquisitions. Federal Realty prefers buying well-located strip malls that need improvement, enhancing property value through redevelopment efforts. When a property reaches its full potential, it is sold for reinvestment.

Federal Realty’s current price, below $100 per share, offers a dividend yield of around 4.5%. While not as cheap as during the early days of the pandemic, the yield is notably higher than the average REIT and S&P 500, making it an attractive option for dividend investors. The stock remains reasonably priced for long-term investors.

For dividend investors seeking consistency, Federal Realty’s dividend yield is significantly higher than an S&P 500 index fund. While the yield has been more attractive in the past, the current price is still appealing for investors looking for reliable and growing dividends. Adding Federal Realty to a portfolio can provide a strong foundation for income growth.

Federal Realty Investment Trust may not be among the top 10 stocks identified by The Motley Fool Stock Advisor team, but it remains a solid choice for dividend investors. The company’s long history of paying reliable dividends, coupled with a generous yield, makes it a valuable addition to income portfolios. While not the cheapest option, Federal Realty offers stability and potential for growth.

Read more: Is Federal Realty a Buy Below $100