Investors in the REIT space need not be disappointed by the FOMC meeting outcome and rate hike moves. This is because a number of REITs like Host Hotels & ResortsHST , Piedmont Office Realty TrustPDM and Weingarten Realty InvestorsWRI have announced their special dividends, which is definitely good news for income-seeking investors.
Specifically, Host Hotels & Resorts has announced a special dividend of 5 cents per share. This is in addition to the fourth-quarter cash dividend of 20 cents per share, reaching the total dividend figure for the year to 85 cents. The dividend will be paid on Jan 15, 2018, to stockholders of record on Dec 29, 2017.
Also, Piedmont Office Realty Trust’s board of directors recently announced a special cash dividend of 50 cents per common share, giving investors another reason to rejoice. The special dividend distribution was primarily due to taxable gains that the company realized on asset dispositions of around $396 million in 2017. This dividend will be paid on Jan 9, 2018, to shareholders of record on Dec 26, 2017.
Usually, special dividends are paid by REITs on capital gains from the sale of assets to avoid paying taxes. Solid dividend payouts remain the biggest attraction for REIT investors as the U.S. law requires these companies to distribute 90% of the annual taxable income in the form of dividends to shareholders.
The other REIT – Weingarten Realty Investors – announced a special cash dividend of 75 cents per share, which is payable on Dec 29, 2017, to shareholders of record as of Dec 26, 2017. According to the company, this dividend will consist mainly of gains on property dispositions.
Earlier, Duke Realty DRE had announced a special cash dividend of 85 cents per share. This primarily resulted from the sale of around $2.85 billion of assets through Sep 30, 2017. This dividend was paid on Dec 12, 2017, to shareholders of record on Dec 1.
Moreover, bringing in more good news for investors, particularly the income seeking ones, recently a number of REITs announced their dividend hikes. Among them are Mid-America Apartment Communities, Inc. MAA and SL Green Realty Corp. SLG , which announced 6% and 4.8% hikes in dividend payouts, respectively.
Currently, Host Hotels & Resorts, Piedmont Office Realty Trust, Weingarten Realty Investors and Duke Realty carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Weingarten Realty Investors (WRI): Free Stock Analysis Report
Mid-America Apartment Communities, Inc. (MAA): Free Stock Analysis Report
Host Hotels & Resorts, Inc. (HST): Free Stock Analysis Report
Duke Realty Corporation (DRE): Free Stock Analysis Report
SL Green Realty Corporation (SLG): Free Stock Analysis Report
Piedmont Office Realty Trust, Inc. (PDM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.