LONDON, UK / ACCESSWIRE / June 26, 2018 / Active-Investors has a free review on AvalonBay Communities, Inc. (NYSE: AVB) following the Company 's announcement that it will begin trading ex-dividend on June 28, 2018. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on June 27, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on AVB:
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On May 24, 2018, AvalonBay announced that its Board of Directors declared a cash dividend on its Common Stock for Q2 2018. The Common Stock dividend is $1.47 per share and is payable July 16, 2018, to all common stockholders of record as of June 29, 2018.
AvalonBay 's indicated dividend represents a yield of 3.44%, which is substantially higher than the average dividend yield of 3.05% for the financial sector. The Company raised its dividend for six years in a row.
AvalonBay has a dividend payout ratio of 65.7%, which means that the Company distributes approximately $0.66 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts ' estimates, AvalonBay is forecasted to report earnings of $4.57 for the upcoming year compared to the Company 's annualized dividend of $5.88. One of the primary reasons for the difference between earnings and annualized dividend is that AvalonBay is a Real Estate Investment Trust (REIT) which is structured by law to distribute at least 90% of earnings. Moreover, since REITs generate income from owning portfolios of investment real estate, they are likely to have higher depreciation charges.
Since depreciation is a non-cash charge, it does not directly impact the ability of dividend the companies can distribute. For this reason, Fund from Operations (FFO) is calculated by adding depreciation and amortization (D&A) to earnings and subtracting any gains on sales which then provides a better picture of any company 's profitability and capacity to pay and to sustain dividends. For instance, AvalonBay 's net income attributable to common stockholders was $141.6 million, or $1.01 per diluted share, compared to $235.9 million, or $1.72 per diluted share, in Q1 2017.
On the other hand, the Company 's FFO attributable to common stockholders increased 6.4% to $2.17 from $2.04 in Q1 2017. The Company 's reported quarter Core FFO per share increased 4.3% to $2.18 from $2.09 for the prior year 's same period. The FFO number indicates that AvalonBay should be able to comfortably cover its dividend payout.
About AvalonBay Communities, Inc.
AvalonBay is an equity REIT in the business of developing, redeveloping, acquiring, and managing apartment communities in leading metropolitan areas primarily in New England, the New York/New Jersey Metro area, the Mid-Atlantic, the Pacific Northwest, and the Northern and Southern California regions of the United States.
As of March 31, 2018, the Company owned or held a direct or indirect ownership interest in 288 apartment communities containing 84,162 apartment homes in 12 states and the District of Columbia, of which 18 communities were under development and 15 communities were under redevelopment.
Stock Performance Snapshot
June 25, 2018 - At Monday 's closing bell, AvalonBay 's stock was slightly up 0.82%, ending the trading session at $172.23.
Volume traded for the day: 727.46 thousand shares, which was above the 3-month average volume of 707.12 thousand shares.
Stock performance in the last month - up 7.16%; and previous three-month period - up 8.44%
After yesterday 's close, AvalonBay 's market cap was at $23.59 billion.
Price to Earnings (P/E) ratio was at 30.50.
The stock has a dividend yield of 3.41%.
The stock is part of the Financial sector, categorized under the REIT - Residential industry.
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