High Quality 3.48% Yield Without The High Price, Excellent Dividend History

This is a great REIT at a great price. It is an ideal fit for the B&H (buy and hold) investors because of several favorable long-term factors that should help the company outperform many peers. The REIT has excellent credit ratings, highly desirable properties, solid management, and excellent margins. The yield of 3.48% may seem too low to some investors, but the dividend is more than covered and has room to grow.

Equity Residential (EQR) is one of the best apartment REITs. It has an excellent balance sheet and steady growth in FFO per share. The company's dividend history is excellent, adjusted for special dividends. The appearance of a dividend cut in recent history and decline in normalized FFO per share may be the largest red flags. However, EQR paid out a very substantial special dividend from selling off a portion of its assets. If the special dividend amount was reinvested into more shares, the decline disappears. With reduced capital expenditures planned for the near future, the REIT is poised to raise dividends or repurchase shares.

Source: Seeking Alpha

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