Entering text into the input field will update the search result below

Mid-America Apartment Communities: An Extraordinary Dividend Increase

Alexander Schiller profile picture
Alexander Schiller


  • MAA raised its dividend by 14.9% for Q3 2022. This was somewhat to be expected due to strong performance.
  • Surprisingly, MAA then again raised its dividend for Q1 2023, by another 12%.
  • Reckless or promising for future dividend growth? I will offer my opinion in this article.
New aprtment building in a housing deveopment on a sunny autumn day


Mid-America Apartment Communities (NYSE:MAA) is a large US apartment equity REIT with around 102k apartment units focused on the Sunbelt. Its top markets mainly lie in Texas and Florida. The company is a member of the S&P 500, sports an A- credit

This article was written by

Alexander Schiller profile picture
I hold a M. Sc. in Mathematics as well as a Ph. D. in Management Information Systems and currently reside in Germany. I have published several research articles in peer-reviewed journals on topics concerning data quality and data analysis and am passionate for investing. My eventual financial goal is to live off my dividends. I have an analytical mindset, love to think deeply and take differing opinions into account to form an educated knowledge base.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MAA, AVB, ESS, EQR either through stock ownership, options, or other derivatives. 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.

Alexander Schiller is neither a certified financial advisor nor in any way licensed to give financial advice. Even though this article may seem like investment advice or a recommendation to buy or sell stocks or other securities, it simply represents information and an opinion. Do not buy or sell stocks or other securities based on the article - perform your own due diligence prior to any investment. Investing in stocks carries significant risk, which may lead to total loss of invested capital. The information presented in this article represents the author's knowledge and opinion based on thorough research and analysis, but no guarantee for the correctness, currency, completeness and consistency of the information is given. The author owns shares of MAA, ESS, AVB, EQR.

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.

Recommended For You

Comments (33)

MAA is a strong operator.....and is positioned in the best regions
for employment growth in the US in 2020-2022

But a look at the MAA chart ''from across the room'' will tell any
investor that the market is discounting the economic slowdown
from the Fed activities.

I think MAA is one of a few best of breed in apartments.......but I would
not consider buying MAA until it gets down to $125, then I will re-access
if the market will take it lower from there.

MAA traded at $117.75 on June 24, 2019
MAA traded at $113.60 on July 6, 2020
MAA traded at $187.60 on August 25, 2021
MAA traded at $184.75 on August 10, 2022
......where will MAA come to rest in 2023-24..?

We still have not seen any real employment de-acceleration in the US
as of January 5th. What will be the MAA price action when we get
meaningfully drops in jobs creation and then an increase in the
unemployment rate...??

I would not be surprised if MAA would trade at $100 if the market got
scared of weak employment leading to negative GDP and then an
overall drop in the equity markets.

MAA purchase price will be the most important point in 2023 for
income investors...not the dividend growth rate in 2020-22
Alexander Schiller profile picture
@jackmaster20 Thanks for your take. I agree that the purchase price is very important. At $100 or even $125 I would rate MAA a very attractive buy. However, the market is forward-looking and since MAA is down 28% from its price a year ago, a certain amount of negativity is already priced in.
@Alexander Schiller

I would agree with you that ''a certain amount of negativity
is already priced in'' to MAA at this time.

However equity markets often will overshot, both on the
upside and the downside.

MAA is a strong operator but I see nothing in the macro or
the technical aspects of this current market that would say
that ''most or all'' of the negativity is now priced into MAA.

Sometimes things can get surprisingly cheap.
Don't fight the Fed & the trend is your ''friend''
(I know the above is trite, but they are true today)

Let's both keep watching MAA in the first half of 2023.
birder profile picture
I like MAA and I have been buying it. I just might buy some more if the price drops some.
Ethan Roberts profile picture
Enjoyed your article. I always believe that dividend increases such as the recent ones by MAA are indicative of management's strong belief in the company's future performance. No mention in your article about the housing market, but with 30 year mortgage interest rates still above 7%, renters will not be likely to buy homes for at least another 1-2 years. Therefore, no choice but to continue paying high rents. The only fly in the ointment is if we get a really harsh recession, many renters will either run home to parents, or give up their apartments to rent with a roommate or two.
@Ethan Roberts

Powell has told us many times he wants wage and tight
employment supply to ease. That will impact apartment
new leasing and rental rate growth.
Ethan Roberts profile picture
@jackmaster20 Does the FED take into consideration the large number of people today who are doing "side gigs" on youtube, onlyfans, upwork, fivrr, and other websites? Based on what I've seen, I believe a large percentage of younger people who lost their jobs during COVID, became entrepreneurs with these side gigs and no longer wish to work for "the man". But the FED talks about the number of unfilled jobs as if people aren't making money otherwise. Some of these people are making $5000-$10,000 a month off their side gigs.
@Ethan Roberts

Regarding your ''side gig'' premise......I suppose there are
some who make a good living on websites, but I would also
say there are a lot more who have tried and failed.

Labor supply imbalance is apparent by the large increases
in wages over the past 2 years.
Fantastic company. I suspect they are bumping against their minimum required distribution and needed to bump it. They have shown a preference for redeploying their free cash flow on development vs paying it out - though as you point out they have still grown the dvd well. I take it as strong evidence of outstanding underlying fundamentals.
Even a very strong REIT, with solid fundamentals, should be at least a 6% dividend yield.
Alexander Schiller profile picture
@hjh888 A 6% dividend yield from such a stable, high-quality business would be extremely attractive.
@Alexander Schiller Not sure about extremely attractive. Throw in ordinary income taxes, state income taxes, etc.. the real return @ 6% dividend yield, after inflation, is very negative.

Depends at what price an investor buys MAA

A low buy price makes MAA an extremely attractive investment
JDDurango profile picture
MAA and CPT. My two favorite apartment REITS in the sweet spot of the Sunbelt states.
@JDDurango agree and just bought more of each this week. Also BSRTF for sunbelt rentals.
TX and FL, I will pass I think the insurance industry will slow down and reverse that migration to those two states
JDDurango profile picture
@ResearchTwiceBuyOnce I couldn’t disagree more.
Alexander Schiller profile picture
@ResearchTwiceBuyOnce In that case, other apartment REITs such as ESS may be more interesting to you.
@ResearchTwiceBuyOnce Please explain. I'm not clear on where this comment is derived from.
Ridgebacks profile picture
Alexander. Nice article. Good to see you publishing. I am following MAA closely. It’s usually been too expensive but the upcoming recession may change that. I also like following your commentary in the Dividend Kings chat room.
Alexander Schiller profile picture
@Ridgebacks Thank you for your encouraging words! I agree that MAA has been too expensive recently, but it's approaching attractive territory.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About MAA

SymbolLast Price% Chg
Div Rate (TTM)
Yield (TTM)
Short Interest
Market Cap
Compare to Peers

More on MAA

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.