Ushering in good news for its shareholders, Apartment Investment and Management Company (AIV) – commonly known as Aimco – announced a hike of 8% in its quarterly common dividend rate to 28 cents from 26 cents paid earlier. The new dividend will be paid on Feb 27, 2015 to shareholders of record as on Feb 13.
Shares of Aimco also scaled a new 52-week high of $41.23 during the NYSE’s regular trading session on Jan 27. Notably, the stock closed at $41.08, reflecting a gain of 56.6% over the past one year.
Based on the increased rate, the annualized dividend comes at $1.12 per share, resulting in an annualized yield of about 2.73%, considering Aimco's closing price on Jan 27.
Aimco has been consistent in enhancing its shareholders’ wealth with steady dividend payouts that have experienced increases over the recent years. We believe the company’s recent dividend hike demonstrates its solid portfolio with healthy cash-flow generating capacity. This Zacks Rank #3 (Hold) stock has a long-term expected growth rate of 6.2%.
Moreover, the company’s portfolio enhancement activity, through continued property sales and reinvestment of proceeds in select apartment homes with higher rents, superior margins and greater-than-expected growth, continue to strengthen its position in markets with high-growth potential. Rise in demand for apartment properties, driven by echo boomers, also promises favorable prospects.
Aimco is scheduled to release its fourth-quarter and full-year 2014 results after the market closes on Feb 5, 2015. The Zacks Consensus Estimate is currently pegged at 55 cents per share for the quarter and $2.08 for full year.
Solid dividend payouts are arguably the biggest attraction for REIT investors. Apart from Aimco, a number of other REITs also came up with dividend hike announcements, of late.
Among them, EPR Properties (EPR) recently announced an increase of over 6% in its monthly dividend rate; Cousins Properties Inc. (CUZ) disclosed a 7% hike in its quarterly dividend rate, and Chatham Lodging Trust (CLDT) revealed a 25% increase in its monthly dividend rate.
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