LONDON, UK / ACCESSWIRE / September 20, 2017 / Pro-Trader Daily takes a closer look at Federal Realty Investment Trust (NYSE: FRT) as the Company's stock will begin trading ex-dividend on September 21, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on September 20, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:

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Dividend Declared

On July 31, 2017, Federal Realty announced the approval by its Board of Trustees of an increase in the regular dividend rate on its common shares to $1.00 per share per quarter resulting in an annualized dividend rate of $4.00 per share. The quarterly cash dividend will be payable on October 16, 2017, to common shareholders of record as of September 22, 2017.

Federal Realty's indicated dividend represents a yield of 3.08% compared to the average dividend yield of 3.17% for the financial sector. Federal Realty is the only real estate investment trust (REIT) in the United States to have increased its common dividend every year for the last 50 years. The Trust is considered a "Dividend Aristocrat" by the S&P 500, a term used to describe S&P 500 companies that have increased their dividend payout for 25 consecutive years or more. Federal Realty is one of only 22 Dividend Aristocrats to have 50+ consecutive years of dividend increases. The compound annual growth rate of the dividend increases over those 50 years is more than 7%.

Dividend Insights

Federal Realty has a dividend pay-out ratio of 67.8%, this represents that the Company distributes approximately $0.68 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts' estimates, Federal Realty is forecasted to report earnings of $3.20 for the next year compared to the Company's annualized dividend of $4.00. Federal Realty is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.

Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the Companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales which provides a better picture of the Company's profitability and capacity to pay and to sustain dividends. For instance, Federal Realty's net income available to common shareholders was $76.2 million and earnings per diluted share was $1.05 for Q2 2017, while it generated funds from operations available for common shareholders (FFO) of $108.6 million, or $1.49 per diluted share, which should sufficiently cover the dividend payout.

As of June 30, 2017, Federal Realty's cash and cash equivalents totaled $96.33 million compared to $23.37 million at December 31, 2016. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.

Recent Development for Federal Realty

On August 31, 2017, Federal Realty announced the sale of 150 Post Street, a seven-story, 105,000 square foot retail and office building located in the Union Square district of San Francisco, for $69.3 million.

"Year-to-date we have completed $123 million of dispositions," said Dan Guglielmone, CFO, and Treasurer, "The sale of 150 Post Street further exemplifies our balanced and disciplined approach to our balance sheet and capital funding needs."

About Federal Realty

Federal Realty Investment Trust is an equity real estate investment trust specializing in the ownership, management, development, and redevelopment of high quality retail assets. Federal Realty's portfolio is located primarily in strategic metropolitan markets in the Northeast, Mid-Atlantic, and California. Federal Realty has paid quarterly dividends to its shareholders continuously since its founding in 1962 and has the longest consecutive record of annual dividend increases in the REIT industry.

Stock Performance

On Tuesday, September 19, 2017, the stock closed the trading session at $125.38, dropping 1.67% from its previous closing price of $127.51. A total volume of 593.32 thousand shares have exchanged hands, which was higher than the 3-month average volume of 466.88 thousand shares. Federal Realty Investment Trust's stock price advanced 1.24% in the last three months. The stock is trading at a PE ratio of 40.13 and has a dividend yield of 3.19%. At Tuesday's closing price, the stock's net capitalization stands at $9.13 billion.

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