Strong Dividend Yield: Easterly Government Properties Inc Surpasses 8%

Persistent Dividends Spark Investor Interest

On Tuesday, shares of Easterly Government Properties Inc (Symbol: DEA) reached a yield exceeding 8% from its quarterly dividend, which is annualized to $1.06. The stock traded as low as $13.22 for the day. Dividends play a crucial role for investors as they have historically contributed significantly to the overall returns of the stock market. For instance, an investor who bought shares of the iShares Russell 3000 ETF (IWV) on May 31, 2000, would have seen a share price of $78.27. By May 31, 2012, the price had slipped to $77.79 — a decline of $0.48, or 0.6%, over 12 years. However, during that time, the investor would have received $10.77 in dividends per share, lifting their total return to 13.15%. Even with reinvested dividends, this averages out to an annual total return of roughly 1.0%. Therefore, a yield above 8% could significantly attract attention if it proves sustainable. Easterly Government Properties Inc is also part of the Russell 3000, highlighting its standing among the largest companies on U.S. stock markets.

Typically, dividend amounts can fluctuate based on a company’s profitability. Analyzing the historical performance chart for DEA can provide insights on whether the recent dividend is likely to be maintained and if an 8% annual yield is feasible in the long term.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.