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By Darnell Brown

In our continuing study of the highest yielding stocks in George Soros' portfolio, this article reviews 6 more dividend stocks Soros has bought recently. For part one and two, click here and here.

DCT Industrial Trust Inc. (DCT) DCT Industrial has a market cap of $1.13 billion with a negative price to earnings ratio. The stock has traded in a 52 week range of between $3.96 and $5.89. The current stock price is $4.61. The company reported second quarter revenues of $63.3 million compared to $58.5 million in revenues for the second quarter of 2010. Second quarter net income was $-8.47 million compared to net income of $-10.7 million in the second quarter of 2010. Year over year the company reported net income of $-37.8 million in 2010 versus $-18.6 million in 2009.

One of DCT Industrial’s competitors is Duke Realty Corporation (DRE) which trades at $11.61. Duke Realty has a market cap of $2.93 billion with a price to earnings ratio of 47.39. Duke Realty pays a dividend which yields 6.10%, versus DCT Industrial whose dividend yields 6.50%.

Soros Fund Management LLC owns 32,000 shares of DCT Industrial. The fund purchased all 32,000 shares during the second quarter of 2011. DCT Industrial has not been profitable since 2008. The company has paid a dividend in every quarter since 2006 but is running low on cash. The second quarter balance sheet shows that DCT Industrial had cash and equivalents of $8.08 million, which is their lowest cash position in more than five years. I question whether this company will be able to maintain their dividend payments unless it begins to make a profit. I rate DCT Industrial Trust as a hold.

Lexington Realty Trust (LXP) Lexington Realty has a market cap of $1.12 billion with a negative price to earnings ratio. The stock has been in a 52 week trading range of between $6.17 and $10.14. The current stock price is $7.12. The company reported second quarter revenues of $85.1 million compared to $86.1 million in revenues for the second quarter of 2010. Second quarter net income was $-44.3 million compared to net income of $-30.3 million in the second quarter of 2010. The company’s year over year earnings have also been poor. In 2010 net income was $-57.8 million compared to net income of $-242 million in 2009.

One of Lexington Realty’s competitors is Boston Properties Inc. (BXP) which is trading at $104.10. Boston Properties has a market cap of $15.29 billion with a price to earnings ratio of 101.36. Boston Properties pays a dividend which yields 2.00%, versus Lexington Realty whose dividend yields 6.70%.

Soros Fund Management LLC owns 29,300 shares of Lexington Realty. The fund purchased all 29,300 shares during the second quarter of 2011. Lexington Realty has not had positive net income since 2007. Lexington Realty has been a staunch dividend paying company and has made quarterly dividend payments since 1994. The company’s second quarter balance sheet showed $52.6 million of cash on hand. I believe that this company will be able to maintain its dividend. However, I would not invest in this company until it begins to make a profit. I rate Lexington Realty Trust as a hold.

Ramco-Gershenson Properties Trust (RPT) Ramco-Gershenson has a market cap of $380.12 million with a negative price to earnings ratio. The stock has traded in a 52 week range of between $9.33 and $13.54. The current stock price is $9.86. The company reported second quarter revenues of $30.2 million compared to $30.4 million in revenues for the second quarter of 2010. Second quarter net income was $5.16 million compared to net income of $-1.04 million in the second quarter of 2010.

One of Ramco-Gershenson’s closest competitors is Developers Diversified Realty Corporation (DDR), which is trading at $11.88. DDR has a market cap of $3.32 billion with a negative price to earnings ratio. DDR pays a dividend which yields 1.40% versus Ramco –Gershenson whose dividend yields 6.70%.

Soros Fund Management LLC owns 20,500 shares of Ramco-Gershenson. The fund purchased all 20,500 shares during the second quarter of 2011. Ramco-Gershenson has been profitable in four out the last five years. The company also has a good dividend paying record and has paid a dividend in every quarter since 1997. This company had a strong second quarter earnings turnaround, and its management proclaimed that the company had laid the foundation for predictable sustainable earnings growth. Also, the company has a price to book ratio of 0.95 which makes the stock cheap when you consider its 6.70% yield. I agree with George Soros and rate Ramco-Gershenson Properties Trust as a buy.

Brandywine Realty Trust (BDN) Brandywine Realty has a market cap of $1.26 billion with a negative price to earnings ratio. The stock has been trading in a 52 week range of between $8.44 and $13.08. The current stock price is $9.33. The company reported second quarter revenues of $145 million compared to $138 million in revenues for the second quarter of 2010. Second quarter net income was $-6.07 compared to $-7.44 million for the second quarter of 2010.

One of Brandywine Realty’s close competitors is Corporate Office Properties Trust (OFC) which is trading at $26.01. Corporate Office has a market cap of $1.85 billion with a negative price to earnings ratio. Corporate Office pays a dividend which yields 6.60% versus Brandywine Realty whose dividend also yields 6.60%.

Soros Fund Management LLC owns 15,300 shares of Brandywine Realty. The fund sold 1,600 shares of the stock during the second quarter of 2011. The fund lost 22% on the sale of those shares. The company has been a good dividend paying company and has paid quarterly dividends since 1994. However, the company’s stock performance has been poor. Over the last three years, the company’s stock price has dropped by 57.42%. The stock price has decreased by 21.13% over the last 52 weeks. Most Real Estate REIT’s have been negatively affected by the downturn in the economy, but I consider this company’s poor earnings and stock performance to be unacceptable. I rate Brandywine Realty Trust as a sell.

Kite Realty Group Trust (KRG) Kite Realty has a market cap of $253.07 million with a negative price to earnings ratio. The stock has traded in a 52 week range of between $3.55 and $5.70. The current stock price is $3.98. The company reported second quarter revenues of $25.5 million compared to $24.6 million in revenues for the second quarter of 2010. Second quarter net income was $-1.06 million compared to net income of $-4.02 million in the second quarter of 2010. The company had net income of $-8.65 million in 2010 and $-1.78 million in 2009.

One of Kite Realty’s competitors is Acadia Realty Trust (AKR) which is trading at $21.40. Acadia Realty has a market cap of $863.10 million with a negative price to earnings ratio. Acadia Realty pays a dividend which yields 3.5% versus Kite Realty whose dividend yields 6.0%.

Soros Fund Management LLC owns 20,500 shares of Kite Realty. The fund purchased all 20,500 shares in the second quarter of 2011. Kite Realty has seen its earnings suffer as a result of the economic slowdown. As a result of the recent losses, the company’s cash reserves and stock holders equity have both been reduced. In spite of these developments, the company has continued to pay quarterly dividends just as it has been since 2004. If the economy improves, Kite Realty should be able to increase earnings and maintain its dividend. I would not invest in this stock at this time. I rate Kite Realty Group Trust as a hold.

First Niagara Financial Group Inc. (FNFG) First Niagara has a market cap of $3.10 billion with a price to earnings ratio of 15.88. The stock has traded in a 52 week range of between $9.75 and $15.10. The current stock price is $10.59. The company reported second revenues of $338 million compared to revenues of $241 in the second quarter of 2010. Second quarter net income was $13.6 million compared to the second quarter net income of $20 million in 2010.

One competitor of First Niagara is M & T Bank Corporation (MTB) which is trading at $73.72. M & T Bank has a market cap of $9.26 billion with a price to earnings ratio of 10.39. M & T Bank pays a dividend which yields 3.90% versus First Niagara whose dividend yields 6.40%.

Soros Fund Management LLC owns 10,200 shares of First Niagara. The fund purchased all 10,200 shares in the second quarter of 2011. First Niagara has provided its investor with steady earnings for years. In the last quarter, it grew its earnings per share by 14%. First Niagara is a good low risk investment with a high dividend income. Many stocks in the banking industry have suffered, but First Niagara has done relatively well losing only 7.43% over the last 52 weeks. I rate First Niagara as a buy.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 20 Highest Yielding Stocks in George Soros's Portfolio, Part 3