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Do You Buy Camden And Its 3.4%-Yielding Dividend?

Feb. 01, 2019 9:52 AM ETCamden Property Trust (CPT)1 Comment
Ploutos Investing profile picture
Ploutos Investing


  • Camden Property Trust has a portfolio of properties located in 14 major markets across the United States.
  • The REIT should be able to continue to benefit from strong market fundamentals in its key markets.
  • Camden is currently undervalued and it pays a 3.35%-yielding dividend.

Investment Thesis

Camden Property Trust (NYSE:CPT) owns a portfolio of diversified residential properties in 14 major markets in the United States. The REIT should continue to benefit from favorable demographic trends and strong market fundamentals in its major markets. The company also has a list of development projects that should contribute to its net asset value and rental revenue in the near future. The company's shares are also undervalued compared to its peers. We believe this is a good investment choice for investors seeking a stable and steadily growing dividend income.

Source: YCharts

Recent Developments

In Q3 2018, Camden saw its funds from operations grew to $1.20 per share from $1.11 per share. This was a growth rate of 8.1% per year. As a result of strong demand, the company has raised its full-year guidance. It now expects its FFO to be $4.76 per share in 2018. This was an increase of $0.02 per share from its previous guidance. It also increased its same property net operating income growth for the full year. It now expects SPNOI growth rate to be 3.2%. This was higher than the growth rate of 3.0% that management projected prior to the beginning of Q3 2018. In the past quarter, Camden also commenced construction at Camden Buckhead, a 365-unit development community located in Atlanta for a total budgeted cost of $160 million.

Reasons why we like Camden and its portfolio

Diversified portfolio of properties located in major markets

Camden is focused on 14 major markets in the United States (see map below). We like Camden's focus in these markets as these markets have much higher population growth and employment growth rates than the national average.

Source: 2017 Annual Report

Favorable demographic trend

In the United States, home ownership rate has been on a declining trend since

This article was written by

Ploutos Investing profile picture
I am a value focused investor. Stocks rise and fall for many different reasons that we often cannot predict. Eventually, it is those companies with a wide moat and the ability to generate cash flow that prevail. Therefore, my investment focus is to find value stocks that are able to generate cash flow, with sustainable dividends and provide growth over time. I focus my attention on analyzing large-capped dividend growth stocks, REITs and ETFs. I aim at providing a quarterly update and insights on stocks I follow. Please feel free to browse the articles that I wrote and provide any comments.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (1)

ARG1 profile picture
I like apartment rental properties and CPT does a very good job of managing their properties. I have been a shareholder for 10 years.
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