10 Best Dividend Aristocrats with Over 3% Yield

8. Federal Realty Investment Trust (NYSE:FRT)

Dividend Yield as of July 17: 3.97%

Federal Realty Investment Trust (NYSE:FRT) ranks eighth on our list of the best dividend aristocrat stocks. The Maryland-based real estate investment trust company invests in shopping centers and other entertainment properties. In the first quarter of 2024, the company reported a rental income of over $291 million, up from $273 million in the same period last year. It showcased a strong start to 2024, achieving its highest-ever first-quarter leasing volume by leasing over 566,000 square feet of comparable retail space. In addition, it secured leases for around 190,000 square feet of office space at its top-tier mixed-use destinations during the quarter. This strong demand underscores the company’s leadership in the shopping center industry.

Although Federal Realty Investment Trust (NYSE:FRT) operates as a typical REIT, its business approach sets it apart from its peers. Unlike competitors that aim to accumulate vast property portfolios, the company focuses on quality over quantity. By the end of March 2024, it owned just 102 properties, but these are highly desirable. The company strategically acquires properties in and around major metropolitan areas with high population density and income levels. This strategy has several advantages, such as during the pandemic when many properties struggled with occupancy, FRT attracted tenants looking to move from nearby locations to secure space in its properties.

Federal Realty Investment Trust (NYSE:FRT) has raised its dividends consistently for the past 56 years in a row. During this period, it raised its payouts at a compound annual growth rate (CAGR) of 7%. Currently, it pays a quarterly dividend of $1.09 per share. With a dividend yield of 3.97%, as of July 17, FRT is one of the best dividend aristocrat stocks on our list.

Insider Monkey’s database of Q1 2024 indicated that 22 hedge funds held stakes in Federal Realty Investment Trust (NYSE:FRT), worth collectively over $244 million.