The Tempting 6% Yield of Apartment Income REIT (AIRC)
To paint a vivid picture, cast your mind back to the year 2000 when a share of the iShares Russell 3000 ETF (IWV) commanded a price of $78.27. Fast forward to 2012, the déjà vu-inducing price was $77.79, a meager decline of $0.48 or a paltry 0.6% over a twelve-year span. Yet, nestled within this seemingly lackluster tale lies a hidden gem, with dividends adding up to an impressive $10.77 per share during the same epoch, elevating the return to a commendable 13.15%. Even accounting for reinvested dividends, the annual total return barely crept up to 1.0%; thus, a yield exceeding 6% cuts a striking figure if it stands on solid ground. As a distinguished member of the Russell 3000 cohort, Apartment Income REIT Corp (Symbol: AIRC) basks in the limelight as one of the behemoths within the esteemed club gracing the U.S. stock markets.
Characteristically, dividend sums do not always march to predictability, swaying to the ebbs and flows of individual company profitability. Delving into the annals of history, a glance at the chart below depicting the trajectory of dividends in the case of Apartment Income REIT Corp (AIRC) can furnish invaluable cues on the plausibility of the continuance of the most recent dividend and by extension, the feasibility of a perennial 6% annual yield.
