These Were Last Week’s 10 Best Dividend Stocks

4. Elme Communities (NYSE:ELME)

Dividend yield: 4.23%

Dividend payout ratio: 196.72%

Ex-Dividend Date: March 19, 2025

Number of Hedge Funds: 19

A 10.95% increase was recorded in the value of Elme Communities (NYSE:ELME) from February 10 to February 14, 2025. The company is engaged in the business of owning and operating built communities.

The 10 K report released by the company recorded a growth in revenue by 6.8% to $223.6 million. The higher rental income and the acquisition of Elme Druid Hills contributed heavily to the revenue growth. The company also announced its focus on owning apartment communities in high rental income generating neighborhoods like Washington, DC metro and Sunbelt regions. As of the fourth quarter, Elme Communities (NYSE:ELME) owns 28 apartment communities and one office property, contributing to the recent increase in the company’s value.

The dividend yield of the stock has been set at 4.23%. The company backs this with a dividend payout ratio of 196.72%. Leveraging close to 2 times its earnings for dividend payments raises concerns regarding the company’s debt structure and reinvestment capabilities. Even so, Elme Communities (NYSE:ELME) enjoys a solid institutional interest, with 19 hedge fund portfolios tracked by Insider Monkey holding stakes at the end of Q3 2024. Dividend-seeking investors should buy shares before the ex-dividend date, March 19, 2025.