Here's How Highwoods Properties Can Afford Its 7.8%-Yielding Dividend
Office real estate investment trust (REIT) Highwoods Properties (NYSE: HIW) has a lofty 7.8% dividend yield. That should be enticing to dividend investors looking to maximize the income their portfolios generate. The office sector, overall, is facing material headwinds, but here's why Highwoods' dividend is likely to survive.
The coronavirus pandemic has had a lingering impact on the way people work. At one point, going into the office was the norm. But after being forced to work from home, many employees have found they are happier not commuting to and from the office, and don't see the point in doing it as often, if at all. There's increasing tension between employers and employees on this front, but it is clear that offices are not operating at full capacity. In fact, REIT peer SL Green (NYSE: SLG), which owns offices in the New York City market, recently highlighted that physical occupancy on some work days of around 60% of 2019 levels was a positive update. If that's good news, can you imagine what bad news would look like?
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Source Fool.com
