WRE has recently cut the dividend.


Snip:

"Washington REIT has slashed its quarterly dividend by more than half. The payout was reduced from 4338¢ to 30¢, or an annualized rate of $1.20. This was unexpected, since WRE was one of the few operators in the REIT sector that did not lower its distribution during the last recession. A desire to maintain the company's fiscal discipline and financial strength was the primary reason cited for the move."

Snip:

"Washington REIT's dividend coverage has thinned significantly in recent years, with the payout consuming 90% to 95% of cash flow, versus a historical average of roughly 80%"

—Value Line.


Washington REIT would have made a disappointing long-term investment. If you'd bought shares at the median price for the year in 2002 (ten years ago) and held your shares you'd be looking at about the same share price today.

Also, the dividend distribution is now south of the amount the company was paying in 2002. Then the annual distribution was $1.39.

kelbon