Top Stock to Buy #3 – Federal Realty Investment Trust (FRT)
Federal Realty Investment Trust (NYSE:FRT) is a real estate investment trust (REIT) that owns, manages and develops shopping centers and street retail properties located in the Northeast, Mid-Atlantic and California. At the end of 2012, it had over 2,400 leases.
Earnings have increased at a steady pace. The company earned $3.90 in 2010, $4.02 in 2011, $4.31 in 2012, and is expected to earn $4.59 in 2013 and $4.78 in 2014. The stock has a dividend yield of 2.6%, and S&P’s 12-month target is $128.
The stock recently fell from a triple-top at $118, but reversed on a Collins-Bollinger Reversal (CBR) buy signal (our proprietary indicator) on May 24, at just above its breakout at $110. This pullback and reversal gives investors an opportunity to buy this quality REIT at a price that could provide a total annual return of more than 16%.