How Vornado and Boston Properties Stack Up to the Current Market
By Benjamin Goldman:REITs are a great option for investors who love dividends. I recently evaluated two of the top REITs, Boston Properties (BXP) and Vornado Realty Trust (VNO), to determine how much long term value they supply to shareholders. After my analysis, I feel both will outperform the current market in the short term, but are not top buys.
Boston Properties is expected by analysts to have an EPS of $4.68 in FY 2011 and $5.14 in 2012. At around $100 per share and a sure 90% payout ratio, you can expect to get between a 4.5 percent and 5 percent return per year in dividends if Boston Properties meets expectations. Since mid-2009, Boston Properties has paid quarterly $0.50 dividends every quarter, which is around a 2% annualized return. Vornado has an estimated EPS of $6.15 and $5.61 in FY 2011 and FY 2012, respectively. At around $85 per share, thisComplete Story »