Urban Edge Properties: A Promising Income Investment for 2025

Achieving significant returns from financial portfolios, whether through stocks, bonds, ETFs, or other securities, remains a primary goal for investors. For income investors, the focus centers on generating stable cash flow from liquid investments. Cash flow streams can arise from bond interest, varying investment interests, and notably, dividends.

A dividend is a valued distribution of a company’s earnings to shareholders, typically assessed by its dividend yield, which measures the dividend as a percentage of the current stock price. Academic studies indicate that dividends significantly contribute to long-term returns, sometimes comprising over one-third of total returns.

Urban Edge Properties Overview

Urban Edge Properties (UE), based in New York, has experienced a price decline of -14.98% this year. The company currently offers a dividend of $0.19 per share, yielding 4.16%. In contrast, the Real Estate Investment Trust (REIT) and Equity Trust – Retail industry average yield is 4.64%, while the S&P 500’s yield stands at 1.69%.

Examining the company’s dividend growth, Urban Edge Properties boasts an annualized dividend of $0.76, reflecting an 11.8% increase from the previous year. Over the past five years, the company has raised its dividend three times, averaging an annual increase of 11.83%. Future dividend growth will hinge on earnings performance and the payout ratio—the percentage of a company’s annual earnings per share paid out as dividends. Currently, Urban Edge Properties maintains a payout ratio of 51%, indicating that it distributed 51% of its trailing twelve-month EPS as dividends.

The outlook for earnings growth appears promising for UE in the upcoming fiscal year. The Zacks Consensus Estimate for 2025 is set at $1.40 per share, with expected earnings growth of 3.70% compared to the previous year.

Conclusion

Investors appreciate dividends for various reasons, from enhancing stock investment profits to decreasing overall portfolio risk and offering tax benefits. However, not every company opts for quarterly payouts. Generally, well-established firms with stable profits are viewed as ideal dividend options, while high-growth companies or tech startups rarely offer dividends.

During periods of rising interest rates, income investors should remain cautious as high-yield stocks often face difficulty. Nevertheless, Urban Edge Properties presents an intriguing investment opportunity. It not only showcases solid dividend potential but also holds a Zacks Rank of 3 (Hold), indicating stability in this current market climate.

Zacks Identifies Top Semiconductor Stock

This stock is merely 1/9,000th the size of NVIDIA, which has surged over +800% since our recommendation. While NVIDIA continues to perform well, our newly highlighted chip stock shows significant potential for growth.

With robust earnings growth and an expanding clientele, this stock is positioned to meet the soaring demand in sectors like Artificial Intelligence, Machine Learning, and the Internet of Things. Global semiconductor manufacturing is anticipated to grow from $452 billion in 2021 to $803 billion by 2028.

Check Out This Stock Now for Free >>

For the latest recommendations from Zacks Investment Research, download “7 Best Stocks for the Next 30 Days.” Click to access this free report.

Urban Edge Properties (UE): Free stock analysis report.

This article was originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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