Vornado Ups Quarterly Dividend (revised) - Analyst Blog
January 23 2013 - 8:59AM
Zacks
Last week, Vornado Realty Trust (VNO) – a
leading real estate investment trust (REIT) – hiked its quarterly
dividend from 69 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 on Jan 18, 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 peers,
DDR Corp. (DDR), hiked its quarterly dividend by
about 12.5% to 13.5 cents.
Last year, Host Hotels & Resorts, Inc. (HST) –
the largest lodging REIT – increased its fourth-quarter dividend
payout by 80% year over year to 9 cents per. Another lodging REIT,
RLJ Lodging Trust (RLJ), also increased its
quarterly dividend by 24.0% to 20.5 cents per share.
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
shareholders.
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).
(We are reissuing this article to correct a mistake. The
original article, issued yesterday, Jan 22, 2013, should no longer
be relied upon.)
DDR CORP (DDR): Free Stock Analysis Report
HOST HOTEL&RSRT (HST): Free Stock Analysis Report
RLJ LODGING TR (RLJ): Free Stock Analysis Report
VORNADO RLTY TR (VNO): Free Stock Analysis Report
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