AvalonBay Communities (NYSE: AVB) is one of the largest apartment real estate investment trusts (REITs) in the United States. It offers a yield of around 2.9%, which isn't huge by REIT standards but is nothing to scoff at considering an S&P 500 Index fund will only get you about half as much yield.

But the real story here is growth. Here's how it is baked into the AvalonBay cake and why a change in market conditions probably won't matter all that much.

The first thing to know about AvalonBay is that dividend investors in search of high yields should probably look elsewhere. Given the fairly modest yield, which sits toward the low side of the stock's historical range, the REIT is probably fully valued. This is really more about long-term business growth and the quality of management. 

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Source Fool.com