Top 5 Dividend Stocks To Watch Right Now

Top 5 Dividend Stocks To Watch Right Now: AvalonBay Communities Inc. (AVB)

AvalonBay Communities, Inc. engages in the development, redevelopment, acquisition, ownership, and operation of multifamily communities in the United States. As of January 31, 2009, the company owned or held a direct or indirect ownership interest in 164 operating apartment communities comprising 45,728 apartment homes in 10 states and the District of Columbia. It also held a direct or indirect ownership interest in 14 communities under construction, as well as held rights to develop an additional 27 communities. The company?s markets are located in New England, the New York/New Jersey metro area, the Mid-Atlantic, the Midwest, the Pacific Northwest, and the Northern and Southern California regions of the United States. AvalonBay Communities has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 1978 and is based in Arlington, Virginia.

Advisors' Opinion:

• [By Sean Williams]

  Another big factor to consider is that Equity Residential and AvalonBay Communities (NYSE: AVB  ) both recently combined to purchase Archstone. Under normal circumstances, residential-REITs like Equity Residential and AvalonBay would go into debt and build new communities, benefiting from the build-out years down the road. Archstone already has a well-established portfolio of rental properties, meaning the transition from purchase to profit is shortened dramatically. Equity Residential took a little over a 26% stake in the Archstone rental portfolio with AvalonBay picking up the remainder.

• [By Susan J. Aluise]

  Like all ETFs, REZ offers the diversification of a mutual fund, with low expenses and the advantages of trading on a major exchange just like a stock. REZs top holdings include multifamily REITs like AvalonBay! (AVB), Equity Residential (EQR), Essex Property Trust (ESS) as well as Public Storage (PSA) common stock, which also benefits from the rental housing boom.

• [By Jonas Elmerraji]

  A buoyant housing market and record low interest rates have provided a windfall for investors in AvalonBay Communities (AVB) -- shares of the $20.5 billion housing REIT have rallied more than 31% since the start of January. Many income investors go gung-ho over conventional commercial REITs, while ignoring the housing REITs; that's a big mistake. AVB is one of the best-run residential real estate investment trusts, with interests in more than 80,000 units spread across some 250 apartment communities.

  It's true that housing REITs don't have many of the same protections from tenants that commercial landlord REITs do. But that hasn't stopped AVB from earning meaningful returns. The firm focuses its portfolio on affluent metro areas like New York and San Francisco, and as a result, it has been able to maintain high occupancy rates for its apartment homes.

  One of AVB's biggest benefits is its pipeline. Instead of acquiring existing apartments, the firm holds development rights to approximately 45 communities as of its most recent financial filings. That hands-on strategy means that AVB is able to collect bigger long-term returns on investment than a mere owner-operator could.

  Right now, AvalonBay pays out a 3% dividend yield -- if the Fed follows the Bank of Japan's lead with another round of QE, that high dividend yield could make AVB one of the bigger beneficiaries of new money pouring into stocks.

  Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

• [By Aaron Levitt]

  When it comes to apartment REITs, AvalonBay Communities (AVB) is one of the largest. The firm has direct or indirect ownership in a massive 273 apartment communities, or roughly 81,500 different apartments or townhomes. The bulk of these buildings are located in markets with a high b! arrier to! entry — Washington D.C., for example — and feature a stable and generally high-income renters base.

source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/top-5-dividend-stocks-to-watch-right-now-2.html