5 Dividend Paying REIT Stocks To Buy Now

2. Boston Properties, Inc. (NYSE:BXP)

Number of Hedge Fund Holders: 20

Dividend Yield as of July 22: 4.45%

Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States. The company is concentrated in five markets: Boston, Los Angeles, New York, Washington DC, and San Francisco. On June 14, Boston Properties, Inc. (NYSE:BXP) declared a quarterly cash dividend of $0.98 per share. The dividend is payable on July 29 to investors of record at the close of business on June 30. As of July 22, the stock has a forward dividend yield of 4.45% and the company has free cash flows of $1.20 billion.

On July 6, Mizuho analyst Vikram Malhotra cut his price target on Boston Properties, Inc. (NYSE:BXP) to $105 from $135 but reiterated a Buy rating on the shares. The analyst noted that the risk/reward for office REITs is now moderately positive from completely negative in Q1 2022. On July 20, Deutsche Bank analyst Derek Johnston lowered his price target on Boston Properties, Inc. (NYSE:BXP) to $104 from $139 and reiterated a Buy rating on the shares.

At the end of the first quarter of 2022, 20 hedge funds were eager on Boston Properties, Inc. (NYSE:BXP) and held stakes worth $1.58 billion in the REIT. This is compared to 22 positions in the previous quarter with stakes of $1.50 billion.

In the second quarter of 2022, Arjuna Capital raised its stakes in Boston Properties, Inc. (NYSE:BXP) by 42%, bringing them to $1.66 million. Arjuna Capital is the largest shareholder in the REIT.

Diamond Hill Capital, an investment management firm, recently published its “Diamond Hill Long-Short Fund” first-quarter 2022 investor letter in which it mentioned Boston Properties, Inc. (NYSE:BXP). Here is what the firm said:

“Commercial real estate investment trust (REIT) Boston Properties (NYSE:BXP) has a solid balance sheet and good assets. However, as the largest public office REIT, it operates in a challenging space due to high capital expenditure needs, the ease of adding new supply and tenant leverage. BXP is also concentrated in large coastal markets that have high taxes and burdensome regulations, and subsequently have seen population outflows. We believe the combination of a tough business and a marginally worse environment given the rising acceptance of at-home work will be challenging over the long term for BXP.”