Vornado Doubles Quarterly Dividend - Analyst Blog
23 January 2013 - 1:10AM
Zacks
Last week, Vornado Realty
Trust (VNO) – 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 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).
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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