Top 5 Dividend Kings of 2021 (Part II)

11. Essex Property Trust Inc (NYSE: ESS)

Dividend Yield: 3.06%

California-based REIT Essex offers real-estate services primarily to apartment communities located along the West Coast. The company has stakes in about 60,000 apartment homes. The stock recently rallied after the company posted upbeat results that point to a recovery after months of losses fueled by the coronavirus pandemic. Same-property NOI improved by 1% and gross revenue increased by 0.3%.

At the end of the fourth quarter of 2020, Jim Simons’ Renaissance Technologies reported owning 116,126 shares of ESS, worth $27.57 million.

In one of their investor letters, Third Avenue Management highlighted a few stocks and Essex Property Trust Inc. (NYSE:ESS) is one of them. Here is what Third Avenue Management stated:

“Essex Property Trust (“Essex”) is a US-based REIT that owns a high-quality portfolio of 250 multifamily communities (with more than 60,000 units) that have been assembled over the better part of five decades and are primarily located in California and Washington. Based upon our experience, it is incredibly challenging to build new product in the company’s core markets (despite constant rhetoric of increasing supply), which makes existing assets like those owned by Essex perpetually underappreciated. While it seems that the company’s occupancy and rental rates will be pressured in the near-term, the company maintains a super-strong balance sheet with a net debt to asset ratio of 25%, a high fixed-charge coverage rate of 5.0 times, and more than $200 million of annual retained cash flow (after dividends). Therefore, Essex could very well have an opportunity to deploy capital in value-enhancing investments (as it has done in other market dislocations), and the company’s portfolio is likely to maintain its value over the long-term given the appeal of its sub-markets and the economic underpinnings of their greater metropolitan areas (e.g., San Francisco, Los Angeles, San Diego, et al).”

Click to continue reading and see the 30 Dividend Champions of 2021 (Part III).

Also check out 30 Dividend Champions of 2021 (Part I).

You can as well read 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 10 Best Aggressive Stocks to Buy Now.

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