This High-Yield Dividend King's Tortoise-Like Approach Is a Business Winner
Federal Realty (NYSE: FRT) has created an incredible dividend record, with annual increases every year for 56 consecutive years. This real estate investment trust (REIT) didn't become a dividend King by accident. It has a well-used playbook that it follows, and one important play in that book is to focus heavily on the rent escalators in its leases. Here's why that matters for this 4.6%-yielding landlord.
Leases are a bit of minutiae, and Federal Realty's focus on the escalators in its contracts is only possible because of other aspects of its business. For example, while some of its strip-mall and mixed-use peers try to build giant property portfolios, Federal Realty goes for quality over quantity. It owns only about 100 or so properties.
Image source: Getty Images.
Source Fool.com
