Boston Properties Inc. (BXP - Analyst Report), one of the leading office REITs in the U.S., has recently declared a cash dividend of 55 cents per share or $2.20 on an annualized basis. The first quarter 2012 dividend is payable on April 30, 2012 to shareholders of record as of March 30, 2012.
A steady dividend payout facilitates the long-term strategy of Boston Properties to provide attractive risk-adjusted returns to its stockholders. Investors looking for high dividend yields are increasingly favoring REITs like Boston Properties. Solid dividend payouts are arguably the biggest enticement for REIT investors as the U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends to shareholders.
Boston Properties concentrates on a few select high-rent, high barrier-to-entry geographic markets which usually fare better in a faltering economy. Two of the largest markets of the company, New York and Washington DC are still among the best of the office markets in the U.S. Furthermore, about 77.2% of the net operating income of the company during fourth quarter 2011 was generated from the Central Business District, which is anticipated to drive above-average organic growth over time.
The company also has a strong and dedicated management team, which is one of the most respected and accomplished in the industry. Boston Properties benefits from the reputation and relationships of its key personnel with the industry as a whole, which further help in attracting profitable business and investment opportunities.
We presently have a long-term Neutral rating on Boston Properties, which currently has a Zacks #3 Rank that translates into a short-term Hold recommendation. We also have a Neutral recommendation and a Zacks #3 Rank for Vornado Realty Trust (VNO - Analyst Report), one of the competitors of Boston Properties.