The Federal Realty Investment Trust (NYSE:FRT) is a real estate investment trust that invests in shopping centres in the United States. Federal Realty is a fine target for income investors in the second half of 2019.
The company released its first quarter 2019 results back in May. Funds from operations available to shareholders rose to $1.56 compared to $1.52 in the prior year. Property Operating Income (POI) posted 3.5% growth and Federal Realty reaffirmed its full-year FFO per diluted share guidance range of $6.30 to $6.46. Investors can expect to see its second quarter 2019 results on August 1.
Federal Realty announced a quarterly dividend of $1.02 per share in the first quarter. This represents a solid 3.1% yield. The company has achieved dividend-growth for 51 consecutive years, qualifying it as one of the few dividend kings available. Its 3.1% yield is one of the highest among this elite group.
The downside for income investors right now is Federal Realty’s price tag. The stock had a price-to-earnings ratio above 40 at the time of this writing. Shares are trading at the high end of its 52-week range, which may put value investors out of the running as we look ahead to August.
Still, as a long-term play it is hard not to like Federal Realty’s dividend-growth history and its higher-than-average yield among dividend kings. Over a 10-year period the stock has returned an annual average of 11% to shareholders. Federal Realty remains a top option for income investors.
