Federal Realty: Dividend Champ at a New 52-Week Low

I’m usually not a big fan of stock screens, but one good way to begin a search for overlooked stocks is to gaze at the list of stocks hitting new 52-week lows. Of course, just because a stock is at a low doesn’t mean it’s cheaper than where it should be. It just means that it’s cheaper than where it was.

Once you’ve found that list of stocks at new lows, then you have to do more digging and see how well-deserved their punishment is. A good next step is to check out the dividend yield. I did this recently and the name Federal Realty, a DC-based REIT, caught my eye.

This morning, shares of Federal Realty (FRT) dropped to $123.77 per share. That’s a new 52-week low. It’s down from $171.08 a few months ago. FRT pays a quarterly dividend so the yield works out to 3.15%. But here’s the important fact—Federal Realty has increased its dividend for the last 49 years in a row. That’s one of the longest streaks on record. The company also has an investment-grade credit rating.

Momentum is real on Wall Street so a stock at a new low has a good chance of making even more new lows. But I strongly suspect that a company like Federal Realty will rebound, though I can’t say when.

Posted by on May 16th, 2017 at 12:49 pm

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.