Dividend Kings: Reliable Sources of Passive Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Dividend Growth Record: Federal Realty Investment Trust (FRT) has increased its dividend for 58 consecutive years, making it a leader in the REIT sector with 104 properties and 28.8 million square feet of commercial space, focusing on high-quality shopping centers to ensure steady earnings growth that supports ongoing dividend increases.
- Global Beverage Giant: PepsiCo (PEP) recently raised its dividend by 4%, extending its growth streak to 54 years, and with its strong brand portfolio and consistent cash flow, it is expected to continue achieving 4% to 6% annual organic revenue growth, ensuring the sustainability of its dividends.
- Utility Stability: Black Hills Corporation (BKH) provides electric and natural gas services to nearly 1.4 million customers across eight states, boasting a 56-year dividend growth record, and plans to invest $4.7 billion by 2030 to meet growing energy demands, supporting its ongoing dividend growth.
- Acquisition Expansion Plans: Black Hills plans to expand its scale through acquisitions, recently agreeing to merge with NorthWestern Energy, which is expected to increase the combined company's annual earnings growth rate to 5% to 7%, further enhancing its dividend payment capacity.
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Analyst Views on FRT
Wall Street analysts forecast FRT stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 106.210
Low
105.00
Averages
110.55
High
120.00
Current: 106.210
Low
105.00
Averages
110.55
High
120.00
About FRT
Federal Realty Investment Trust is an equity real estate investment trust (REIT). The Company specializes in the ownership, management, and redevelopment of retail and mixed-use properties located primarily in communities in the Northeast and Mid-Atlantic regions of the United States, California, and South Florida. Its portfolio includes retail in many formats, ranging from regional, community and neighborhood shopping centers that are often anchored by grocery stores to mixed-use properties that are centered around a retail component but also include office, residential and/or hotel components. The Company’s 102 properties include approximately 3,500 tenants in 27 million commercial square feet, and approximately 3,100 residential units. Its portfolio includes Assembly Square, Andorra Shopping Center, Assembly Row, and Bala Cynwyd On City Avenue.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dividend Kings: Reliable Sources of Passive Income
- Dividend Growth Record: Federal Realty Investment Trust (FRT) has increased its dividend for 58 consecutive years, making it a leader in the REIT sector with 104 properties and 28.8 million square feet of commercial space, focusing on high-quality shopping centers to ensure steady earnings growth that supports ongoing dividend increases.
- Global Beverage Giant: PepsiCo (PEP) recently raised its dividend by 4%, extending its growth streak to 54 years, and with its strong brand portfolio and consistent cash flow, it is expected to continue achieving 4% to 6% annual organic revenue growth, ensuring the sustainability of its dividends.
- Utility Stability: Black Hills Corporation (BKH) provides electric and natural gas services to nearly 1.4 million customers across eight states, boasting a 56-year dividend growth record, and plans to invest $4.7 billion by 2030 to meet growing energy demands, supporting its ongoing dividend growth.
- Acquisition Expansion Plans: Black Hills plans to expand its scale through acquisitions, recently agreeing to merge with NorthWestern Energy, which is expected to increase the combined company's annual earnings growth rate to 5% to 7%, further enhancing its dividend payment capacity.
See More
Federal Realty Trust Declares Quarterly Dividend of $1.13
- Quarterly Dividend Announcement: Federal Realty Trust (FRT) declares a quarterly dividend of $1.13 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow and bolster investor confidence.
- Yield Overview: The forward yield stands at 4.32%, indicating the company's attractiveness in the current market environment, which may draw in more investors seeking reliable income streams.
- Payment Schedule: The dividend is payable on April 15, with a record date of April 1 and an ex-dividend date also set for April 1, ensuring shareholders receive timely returns and reinforcing shareholder loyalty.
- Future Growth Expectations: Federal Realty signals a near 6% Core FFO growth target for 2026 while advancing its residential development pipeline, indicating a proactive strategy in expanding its business and enhancing financial performance.
See More
Federal Realty Investment Trust Q4 Earnings Highlights
- Earnings Growth: Federal Realty Investment Trust (FRT) reported a 6.4% increase in FFO per share for Q4, slightly below the midpoint of guidance, yet indicating strong operational performance, with core FFO expected to reach $7.42 to $7.52 per share in 2026, reflecting a growth potential of approximately 5.8%.
- Enhanced Liquidity: Year-end liquidity stood at $1.3 billion, bolstered by the closure of a $250 million delayed draw term loan, which enhances the company's financial flexibility and supports future investments and expansions.
- Leasing Rate Improvement: The small shops segment achieved a leasing rate of 93.8%, up 50 basis points from the previous quarter, indicating strong rental growth opportunities, particularly driven by robust demand in California, which is expected to further boost revenues.
- Market Challenges: Despite strong FFO growth, the impact of non-cash charges related to Saks' bankruptcy has led to a slowdown in comparable POI growth forecasted at 3% to 3.5% for 2026, while the company faces refinancing pressures of 170 to 180 basis points, highlighting market uncertainties.
See More
Federal Realty Investment Trust Q4 2025 Earnings Highlights
- Strong Financial Performance: FFO per share for Q4 2025 was reported at $1.84, reflecting a 6.4% year-over-year growth, despite a slight miss due to a noncash charge from Saks' bankruptcy, indicating resilience and growth potential in the market.
- Record Leasing Activity: The company achieved record leasing volume in 2025, completing 601,000 square feet of transactions in the quarter and 2.3 million square feet for the year, with rollover rates of 12% and 15%, respectively, which not only boosted revenue but also enhanced competitive positioning.
- Acquisitions and Dispositions: Federal Realty acquired Annapolis Town Center and Village Pointe, adding nearly 1 million square feet for $340 million at an initial yield around 7%, while Q4 asset dispositions totaled $169 million, showcasing flexibility in asset management.
- Optimistic Future Outlook: The company projects 2026 Core FFO per share between $7.42 and $7.52, indicating approximately 5.8% growth, with occupancy expected to dip slightly in the first half but rebound above 94% by year-end, reflecting confidence in future market conditions.
See More
Federal Realty (FRT) Q4 2025 Earnings Transcript
See More
Federal Realty Trust Q4 Earnings Miss Expectations
- Earnings Growth Struggles: Federal Realty Trust (FRT) reported Q4 core FFO of $1.84 per share, which, while up from $1.77 in Q3, fell short of the $1.85 analyst estimate, indicating pressure on profitability that may affect investor confidence.
- Strong Revenue Performance: Despite the FFO miss, FRT's total revenue reached $336 million, exceeding the $329 million consensus and up from $311 million a year ago, demonstrating resilience in revenue generation amidst challenging conditions.
- Rising Operating Expenses: Operating expenses for Q4 climbed to $220.4 million, up from $211.6 million in Q3 and $203.9 million in Q4 2024, reflecting challenges in cost control that could pressure future profits.
- Robust Leasing Activity: FRT signed 105 leases for 600,684 square feet at an average rent of $39.09 per square foot, representing a 12% increase over last year's average contractual rent of $34.84, indicating a rebound in market demand and rental growth potential.
See More
Dividend Kings: Reliable Sources of Passive Income
- Dividend Growth Record: Federal Realty Investment Trust (FRT) has increased its dividend for 58 consecutive years, making it a leader in the REIT sector with 104 properties and 28.8 million square feet of commercial space, focusing on high-quality shopping centers to ensure steady earnings growth that supports ongoing dividend increases.
- Global Beverage Giant: PepsiCo (PEP) recently raised its dividend by 4%, extending its growth streak to 54 years, and with its strong brand portfolio and consistent cash flow, it is expected to continue achieving 4% to 6% annual organic revenue growth, ensuring the sustainability of its dividends.
- Utility Stability: Black Hills Corporation (BKH) provides electric and natural gas services to nearly 1.4 million customers across eight states, boasting a 56-year dividend growth record, and plans to invest $4.7 billion by 2030 to meet growing energy demands, supporting its ongoing dividend growth.
- Acquisition Expansion Plans: Black Hills plans to expand its scale through acquisitions, recently agreeing to merge with NorthWestern Energy, which is expected to increase the combined company's annual earnings growth rate to 5% to 7%, further enhancing its dividend payment capacity.
See More
Federal Realty Trust Declares Quarterly Dividend of $1.13
- Quarterly Dividend Announcement: Federal Realty Trust (FRT) declares a quarterly dividend of $1.13 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow and bolster investor confidence.
- Yield Overview: The forward yield stands at 4.32%, indicating the company's attractiveness in the current market environment, which may draw in more investors seeking reliable income streams.
- Payment Schedule: The dividend is payable on April 15, with a record date of April 1 and an ex-dividend date also set for April 1, ensuring shareholders receive timely returns and reinforcing shareholder loyalty.
- Future Growth Expectations: Federal Realty signals a near 6% Core FFO growth target for 2026 while advancing its residential development pipeline, indicating a proactive strategy in expanding its business and enhancing financial performance.
See More
Federal Realty Investment Trust Q4 Earnings Highlights
- Earnings Growth: Federal Realty Investment Trust (FRT) reported a 6.4% increase in FFO per share for Q4, slightly below the midpoint of guidance, yet indicating strong operational performance, with core FFO expected to reach $7.42 to $7.52 per share in 2026, reflecting a growth potential of approximately 5.8%.
- Enhanced Liquidity: Year-end liquidity stood at $1.3 billion, bolstered by the closure of a $250 million delayed draw term loan, which enhances the company's financial flexibility and supports future investments and expansions.
- Leasing Rate Improvement: The small shops segment achieved a leasing rate of 93.8%, up 50 basis points from the previous quarter, indicating strong rental growth opportunities, particularly driven by robust demand in California, which is expected to further boost revenues.
- Market Challenges: Despite strong FFO growth, the impact of non-cash charges related to Saks' bankruptcy has led to a slowdown in comparable POI growth forecasted at 3% to 3.5% for 2026, while the company faces refinancing pressures of 170 to 180 basis points, highlighting market uncertainties.
See More
Federal Realty Investment Trust Q4 2025 Earnings Highlights
- Strong Financial Performance: FFO per share for Q4 2025 was reported at $1.84, reflecting a 6.4% year-over-year growth, despite a slight miss due to a noncash charge from Saks' bankruptcy, indicating resilience and growth potential in the market.
- Record Leasing Activity: The company achieved record leasing volume in 2025, completing 601,000 square feet of transactions in the quarter and 2.3 million square feet for the year, with rollover rates of 12% and 15%, respectively, which not only boosted revenue but also enhanced competitive positioning.
- Acquisitions and Dispositions: Federal Realty acquired Annapolis Town Center and Village Pointe, adding nearly 1 million square feet for $340 million at an initial yield around 7%, while Q4 asset dispositions totaled $169 million, showcasing flexibility in asset management.
- Optimistic Future Outlook: The company projects 2026 Core FFO per share between $7.42 and $7.52, indicating approximately 5.8% growth, with occupancy expected to dip slightly in the first half but rebound above 94% by year-end, reflecting confidence in future market conditions.
See More
Federal Realty (FRT) Q4 2025 Earnings Transcript
See More
Federal Realty Trust Q4 Earnings Miss Expectations
- Earnings Growth Struggles: Federal Realty Trust (FRT) reported Q4 core FFO of $1.84 per share, which, while up from $1.77 in Q3, fell short of the $1.85 analyst estimate, indicating pressure on profitability that may affect investor confidence.
- Strong Revenue Performance: Despite the FFO miss, FRT's total revenue reached $336 million, exceeding the $329 million consensus and up from $311 million a year ago, demonstrating resilience in revenue generation amidst challenging conditions.
- Rising Operating Expenses: Operating expenses for Q4 climbed to $220.4 million, up from $211.6 million in Q3 and $203.9 million in Q4 2024, reflecting challenges in cost control that could pressure future profits.
- Robust Leasing Activity: FRT signed 105 leases for 600,684 square feet at an average rent of $39.09 per square foot, representing a 12% increase over last year's average contractual rent of $34.84, indicating a rebound in market demand and rental growth potential.
See More
