If You Invested $10,000 In AvalonBay Communities Stock 10 Years Ago, How Much Would You Have Now?

Benzinga
26 Nov 2024

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AvalonBay Communities, Inc. (NYSE:AVB) is an equity REIT in the business of developing, redeveloping, acquiring and managing apartment communities in leading metropolitan areas in New England, the New York/New Jersey Metro area, the mid-Atlantic, the Pacific Northwest and Northern and Southern California, as well as in the company’s expansion regions of Raleigh-Durham and Charlotte, North Carolina, Southeast Florida, Dallas and Austin, Texas and Denver, Colorado.

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It is set to report its Q4 2024 earnings on Jan. 29, 2025. Wall Street analysts expect the company to post an EPS of $2.83, up from $2.74 in the year-ago period. According to Benzinga Pro, quarterly revenue is expected to reach $740.20 million, up from $704.71 million in the previous year.

If You Bought AvalonBay Communities Stock 10 Years Ago

The company's stock traded at approximately $157.65 per share 10 years ago. If you had invested $10,000, you could have bought roughly 63 shares. Currently, shares trade at $231.94, meaning your investment's value could have grown to $14,712 from stock price appreciation alone. However, AvalonBay Communities also paid dividends during these 10 years. 

AvalonBay Communities' dividend yield is currently 2.93%. Over the last 10 years, it has paid about $60.03 in dividends per share, which means you could have made $3,808 from dividends alone. 

See Also: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100 for properties like the Byer House from Stranger Things.

Summing up $14,712 and $3,808, we end up with the final value of your investment, which is $18,520. This is how much you could have made if you had invested $10,000 in AvalonBay Communities stock 10 years ago. This means a total return of 85.2%. However, this figure is significantly less than the S&P 500 total return for the same period, which was 227.90%.

What Could The Next 10 Years Bring? 

AvalonBay Communities has a consensus rating of "Neutral" and a price target of $213.04 based on the ratings of 28 analysts. The price target implies a potential downside of around 8% from the current stock price.

On Nov. 4, the company announced its Q3 2024 earnings, posting a core FFO of $2.74 per share, beating the consensus estimate of $2.73, as reported by Benzinga.

Trending: Arrived Home's Private Credit Fund’s has historically paid an annualized dividend yield of 8.1%*, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. 

For its fourth quarter and full year 2024 financial outlook, the company expects an FFO per share of $2.67-$2.77 and $11.03-$11.13, respectively. 

Check out this article by Benzinga, which highlights 11 analysts' insights from AvalonBay Communities.

Given the expected downside potential, growth-focused investors may not find AvalonBay Communities stock attractive. Conversely, the stock can be a good option for income-focused investors, who can benefit from the company's solid dividend yield of 2.93%.

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Arrived Achieved A Total Return of 34.7% On Their Biggest Sale Yet — Diversify Your Monthly Income Stream With Fractional Real Estate

Arrived allows individuals to invest in shares of rental properties for as little as $100, providing the potential for monthly rental income and long-term appreciation without the hassles of being a landlord. With over $1 million in dividends paid out last quarter and a growing selection of properties across various markets, Arrived offers an attractive alternative for investors seeking to build a diversified real estate portfolio. 

In October 2024, Arrived sold The Centennial, achieving a total return of 34.7% (11.2% average annual returns) for investors. Arrived aims to continue delivering similar value across our portfolio through careful market selection, attentive property management, and thoughtful timing in sales.

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This article If You Invested $10,000 In AvalonBay Communities Stock 10 Years Ago, How Much Would You Have Now? originally appeared on Benzinga.com

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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