It is very advantageous to favor the highest paying dividend stocks. But it is even more advantageous to study these firms in detail, cull the worst of these firms, and invest in only the best dividend paying stocks. In this report, we will be looking at Washington Real Estate (WRE) in greater focus.
Washington Real Estate Investment Trust is a self-administered, self-managed equity real estate investment trust (REIT) that operates in the Washington D.C. metro area. WRE owns and operates a diverse, income-producing portfolio of office buildings, retail centers, and multifamily apartment units. As of the second quarter of 2016, WRE had a portfolio of 54 properties and over 3,200 multifamily apartment units.
WRE sales have barely budged in the last 7 – 8 years. This is not necessarily a bad thing. Some firms are very careful and conservative in their approach to growth. They invest only in those assets that they are absolutely certain they can manage efficiently and operate profitably.
Firms that embrace this go-it-slow approach to business, though, should exhibit higher and more consistent profits. In fact, many other measures of efficiency should be more pronounced as well. Our standards for these slow growers go up.
The trouble with WRE is that its profits have not shown much more growth than its sales. And, though its cash flows and free cash flows have been almost consistently positive, they have not been particularly strong either.
Lastly, WRE’s dividends confirm the poor prospects the other numbers reveal. If eyes are the windows to the soul, then the dividends are a firm’s eyes. They are the single most revealing number an investor can study. The dividends were cut in 2012, and have not been increase since.
WRE looks strong in some ways, but not in enough ways to compensate for the above shortcomings. We give WRE just and average rating for its overall fundamentals, and we would not consider it one of our best monthly dividend stocks.
Stat Sheet – Washington Real Estate 4/13/16
|Industry||Real Estate Operations|
|Market Cap||$ 1,986|
|Growth Prospects||Below Average|
|Price Volatility||Below Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
If you would like to see the highest paying dividend stocks that we feel are also the top dividend paying stocks, click the link below.
Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.