REITs Offer Average Annual Yields of 5.6% for Investors
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Yield Advantage: Real Estate Investment Trusts (REITs) typically offer above-average dividend yields, with Realty Income providing an annual yield of approximately 5.6%, significantly higher than the S&P 500's 1.1%, making REITs a preferred asset in long-term portfolios.
- Investment Convenience: REITs trade like stocks, allowing investors to buy and sell at any time without waiting for buyers, which enhances liquidity and makes real estate investment simpler and more flexible for those looking to avoid traditional landlord hassles.
- Diverse Options: REITs encompass various types, such as NNN REIT, which focuses on retail properties and has increased its dividend for 36 consecutive years with a yield of 6%, indicating its potential for stable cash flow and long-term growth.
- Market Performance: While Realty Income is highlighted as a noteworthy REIT, the analyst team notes it did not make the current list of top ten recommended stocks, reflecting a cautious market sentiment regarding its future performance.
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Analyst Views on FRT
Wall Street analysts forecast FRT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRT is 110.55 USD with a low forecast of 105.00 USD and a high forecast of 120.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 100.590
Low
105.00
Averages
110.55
High
120.00
Current: 100.590
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.
Federal Realty Investment Trust Releases 2025 Tax Treatment for Distributions
- Total Dividends: Federal Realty Investment Trust announced a total distribution of $4.43 per common share for 2025, demonstrating the company's ongoing profitability and commitment to shareholder returns, thereby reinforcing its leadership position in the REIT sector.
- Preferred Share Dividends: The total distribution for the 5.000% Series C Cumulative Redeemable Preferred Shares in 2025 is $1.25, reflecting the company's robust capital management strategy that ensures stable returns for preferred shareholders.
- Consecutive Dividend Increases: Federal Realty has increased its quarterly dividends for 58 consecutive years, marking the longest record in the REIT industry, which underscores the company's strong competitive edge and sustainable growth potential in the market.
- Portfolio Scale: As of September 30, 2025, the company owns 103 properties with approximately 3,600 tenants and 27.9 million commercial square feet, showcasing its significant influence in the high-quality retail property market and its ability to meet market demand.
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Federal Realty Trust Marks 58 Years of Dividend Increases, Attracting Investor Interest
- Dividend Appeal: Federal Realty Trust offers a 4.3% dividend yield, significantly higher than the S&P 500's 1.1% and the average REIT's 3.9%, highlighting its attractiveness for retirement income.
- Dividend King Status: With 58 consecutive years of dividend increases, Federal Realty stands as the only Dividend King in the REIT sector, showcasing its stable financial performance and long-term investment value.
- AGNC Investment Risks: Although AGNC Investment boasts a high 12% dividend yield, the volatility and risks associated with its dividend payments make it unsuitable for investors relying on dividends for living expenses.
- Investment Strategy Advice: For investors seeking stable income, Federal Realty is a better choice, while AGNC Investment is more suitable for long-term investors focused on total returns, emphasizing the compatibility of different investment goals.
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