Famous dividend stocks like Coca-Cola Co (NYSE:KO), Altria Group Inc (NYSE:MO) and PepsiCo Inc (NASDAQ:PEP) often get the limelight. But there are some small companies paying high dividends which often slip through the cracks and remain ignored by the market and analysts. We recently covered some of the best high-yield penny dividend stocks to buy according to hedge funds. Brandywine Realty Trust (NYSE:BDN), being a notable name in the REIT industry, deserves special attention.
Brandywine Realty Trust (NYSE:BDN)
Number of Hedge Fund Investors: 22
Philadelphia, Pennsylvania-based office buildings REIT Brandywine Realty Trust (NYSE:BDN) is one of the best high dividend penny stock to buy according to hedge funds. Insider Monkey’s exclusive database of 933 hedge funds shows that 22 funds had stakes in Brandywine Realty Trust (NYSE:BDN) as of the end of 2023.
Brandywine Realty Trust (NYSE:BDN) has a dividend yield of about 12% as of May 14. Last month, Brandywine Realty Trust (NYSE:BDN) posted solid Q1 results, reporting FFO of $0.24 for the period that was in line with Wall Street estimates. Revenue fell about 2.1% year over year to $126.48 million, beating estimates by $1.08 million. However, unlike Coca-Cola Co (NYSE:KO), Altria Group Inc (NYSE:MO) and PepsiCo Inc (NASDAQ:PEP), BDN is a small company with low hedge fund sentiment.
Photo by Karolina Grabowska:
Last month, the company talked about its dividend policies and expectations during its earnings call:
” The board reviews that on a regular basis along with management, and we did reduce it down to $0.60 per share so that $80 million a year in total payments. I think as we looked at the decision back then, and certainly as we view it today, one of the key variables was ensuring that we had clear runway on the loan maturity front. And I think the bond transaction did a couple of things when it reinforced the fact that we can run the company with ample liquidity for the foreseeable future, keeping that line of credit close to zero. Second, it really did reinforce to all of our fixed income stakeholders on the unsecured side that Brandywine is committed to the unsecured marketplace. And our hope is as the conditions improve, as the debt mark-to-market becomes positive versus negative, we’ll be able to restore our investment grade rating and that we wind up in a very good position, both from a liquidity and a balance sheet improving standpoint.
So I think one of the key issues we take a look at is with that liquidity, second was portfolio stability, what is going to be the ongoing consumption of capital. And as we’ve talked with other questions on the call, we have very little rollover going forward and we think a very stable platform. And then when we look at the development pipeline, there’s really very little left to fund. And even to the question on the 3151 construction loan, I mean, the vast majority of money is already invested to kind of deliver that build into core and shell condition.”
Is Brandywine Realty Trust (NYSE:BDN) The Best High-Dividend Penny Stock?
Insider Monkey’s analysis of hedge funds shows that Brandywine Realty Trust (NYSE:BDN) is not the best high-dividend penny stock to buy now.
Click to see the 10 Best High-Dividend Penny Stocks Better Than Brandywine Realty Trust.
Disclosure: None.