1 Reason to Buy AvalonBay Communities (AVB) =========================================== Tue, July 29, 2025 at 4:25 AM EDT 3 min read In This Article: Key Points * AvalonBay pays a high-yielding and steadily rising dividend. * It has multiple growth drivers. * The REIT should be able to continue increasing its payout. **AvalonBay Communities**(NYSE: AVB) is one of the country's largest apartment landlords, with almost 95,000 units across a dozen states. It has a diversified portfolio spanning major coastal markets and growing metro areas in the Sunbelt region. The has an excellent record of growing shareholder value, delivering an average annual of 11.7% since its IPO. A big driver of those returns is its dividend. A key reason to buy AvalonBay is its high 3.5% current yield, along with its steadily rising payout. It's had a 4.8% compound annual growth rate since 2000. Image source: Getty Images. AvalonBay Communities currently pays a quarterly dividend of $1.75 per share, or $7 annually. It raised its payment by 2.9% earlier this year and nearly 300% since its IPO in 1993. The landlord easily supports this payment. It expects $11.14 to $11.64 in core funds from operations (FFO) per share this year. Its conservative payout ratio lets it retain cash for new investments. AvalonBay also has an elite balance sheet, providing additional flexibility for expanding its apartment portfolio. The REIT used its flexibility to buy eight apartment communities in Texas earlier this year for a combined $618.5 million. AvalonBay also has $3 billion of development projects under way that it expects to complete over the next couple of years. It still has $2.8 billion of liquidity to fund additional accretive growth investments as opportunities arise. In addition, AvalonBay's existing apartment portfolio should continue to benefit from strong apartment demand across its markets. This catalyst should keep occupancy levels high and drive up rental rates. Rising rents and portfolio growth should drive above-average net operating income growth, supporting continued dividend increases. AvalonBay's high-yielding and steadily rising dividend makes it a great stock to buy for those seeking to make passive income from real estate.

1 Reason to Buy AvalonBay Communities (AVB)

AvalonBay Communities (AVB) is a large apartment landlord with 95,000 units across 12 states, known for its high-yield dividend of 3.5% and steady growth. The REIT has a strong balance sheet, $3 billion in development projects, and $2.8 billion in liquidity, supporting continued dividend increases and expansion.