Equity Residential Offers Strong Dividend Yield Above 4%

In the latest trading session, Equity Residential (Symbol: EQR) was notable for its impressive dividend yield, exceeding 4% based on its quarterly dividend, which is annualized at $2.77. The stock traded as low as $68.79 during the day. Understanding dividends is crucial for investors, as they have historically contributed significantly to the total returns of the stock market.

For context, consider an investment in the S&P 500 ETF (SPY) purchased at $146.88 per share on December 31, 1999. By December 31, 2012, that share had declined to $142.41, indicating a loss of $4.67 over those years. However, shareholders collected $25.98 per share in dividends during that period, leading to a total return of 23.36%. Although this resulted in an average annual total return of only about 1.6% when dividends were reinvested, a sustainable yield above 4% like that of Equity Residential is particularly appealing.

As a member of the S&P 500, Equity Residential holds a significant position among large-cap companies within the index. However, dividends may not always be reliable, fluctuating with each company’s profitability. Investors should examine EQR’s historical dividend chart to assess the likelihood of maintaining the current yield and to understand the workability of a 4% annual yield in the future.

For more financial insights, click here to discover nine other dividend stocks that have recently gone on sale.

Related Information:

• Ex-Dividend Calendar
• Institutional Holders of LRGF
• Funds Holding BNMV

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