Small Stores Are Driving This Dividend King's Rebound
Federal Realty (NYSE: FRT) has increased its dividend for more than 50 consecutive years, a feat unmatched by any other real estate investment trust (REIT). It hasn't achieved this incredible record by accident, and the 2020 pandemic shows the resilience of its portfolio of strip malls and mixed-use developments. Today, however, the most important factor to watch is probably Federal Realty's small stores. Here's why.
Retail properties across the board were hit hard by the pandemic, as people practiced social distancing, working from home became widespread, and nonessential businesses were shuttered by the government. Federal Realty continued to increase its dividend, by a token amount, despite the headwinds, maintaining its status as a Dividend King. During Federal Realty's second-quarter 2020 earnings conference call, Chief Executive Officer Donald Wood said, "This company has effectively been built to be able to provide an equity investor a return that comes from appreciation as well as a dividend."
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Source Fool.com
