American Assets Trust: 7% Yield And A Bargain Price

(8min)

Summary

  • American Assets Trust offers a compelling 7.1% dividend yield with a conservative 69% payout ratio, making it attractive for income investors.
  • AAT's diversified portfolio in high-demand coastal markets and strategic capital recycling position it for steady FFO/share growth, despite short-term headwinds.
  • The stock's current price of $19.11 and a forward P/FFO of 9.7 presents a significant discount to its historical valuation, indicating strong value.
  • Looking for a portfolio of ideas like this one? Members of iREIT®+HOYA Capital get exclusive access to our subscriber-only portfolios. Learn More »
Portrait of a cheerful young woman holding money banknotes and celebrating isolated over beige background.

Denis_Vermenko

Now is a great time to be an income investor, no matter how you slice and dice it. With many stocks trading at bargain valuations, it’s time to pick up quality on the cheap. This brings me to American Assets

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This article was written by

21.46K Followers

I am Gen Alpha. I have more than 14 years of investment experience, and an MBA in Finance. I focus on stocks that are more defensive in nature, with a medium- to long-term horizon.

I provide high-yield, dividend growth investment ideas in the investing group

iREIT®+HOYA Capital

. The group helps investors achieve dependable monthly income, portfolio diversification, and inflation hedging. It provides investment research on REITs, ETFs, closed-end funds, preferreds, and dividend champions across asset classes. It offers income-focused portfolios targeting dividend yields up to 10%.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AAT 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.

I am not an investment advisor. This article is for informational purposes and does not constitute as financial advice. Readers are encouraged and expected to perform due diligence and draw their own conclusions prior to making any investment decisions.

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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