Like so many stocks, shares of AvalonBay Communities (NYSE: AVB) have taken it on the chin this year. The real estate investment trust (REIT) has lost a quarter of its value due mainly to the Federal Reserve's decision to raise interest rates to fight inflation. Higher interest rates have historically weighed on REIT stock prices. That pushes up their dividend yields to compensate investors for their higher risk profile relative to other income-focused investments like bonds and bank CDs.
As someone who likes to earn passive income, I couldn't resist the opportunity to add to my position and lock in a 3.4% dividend yield , more than double the S&P 500 's average these days. AvalonBay has been a solid income producer over the years and should continue delivering for income investors like me in the future.
AvalonBay has been a dependable dividend stock over the years. The apartment-focused residential REIT has delivered nearly three decades of dividend stability and growth. While it hasn't increased its dividend payment every year, AvalonBay has grown it at a 5% annualized rate overall since its initial public offering in 1994. AvalonBay's ability to maintain its dividend during some very challenging periods for the economy is a testament to its resilient business model and balance sheet.
For further details see:
Why I Couldn't Resist Buying More of This High-Yield Dividend Stock
