AvalonBay Communities, Inc., headquartered in Alexandria,
Virginia, currently owns or holds an ownership interest in 144
apartment communities containing 41,907 apartment homes in ten
states and the District of Columbia, of which eleven communities
are under construction and one community is under reconstruction.
AvalonBay is in the business of developing, redeveloping,
acquiring and managing apartment communities in high barrier-to-
entry markets of the United States. More information on AvalonBay
may be found on AvalonBay's Web site at http://www.avalonbay.com.
[Source: Company Press Release]
Reasons to Invest:
This week's Drip of the Week fashions a 5.01 percent annual
dividend yield, which calculates out to a quarterly dividend of
$0.70 per share. AvalonBay Communities (NYSE:AVB) not only
provides a handsome dividend, but they also have been riding
through a March 2003 regression channel with ease. In fact over
the past 15 months the stock has gained more than twenty points
and is showing no signs of immediate weakness.
On June 16th, AvalonBay's Board of Directors announced that they
had approved their second quarter dividend of $0.70 per share
owned. The dividend is to be distributed on July 15th, 2004, to
shareholders on record as of July 1st. The company is expecting
to see a 7.72 percent dividend percentage growth rate over the
next three years, and 7.50 percent over the next five years.
First quarter figures tell a story of good things to come for
AVB, as their revenues reportedly rose six percent to $156.9
million. Net income (before an accounting change) increased by
19 percent to $17.4 million. The company noted that these
results reflect a higher rental and other income received as well
as reduced interest expenses.
In regards to price performance, over the past four weeks AVB has
ranked in the top twenty percent of its industry. They have a
52-week price change of 32.50 percent, and 16.23 percent in
relation to the S&P 500. On Friday (June 18th, 2004) Avalon Bay
set a new 52-week high of 56.19.
The Point and Figure Chart on AVB shows a PnF Pattern of an
Ascending Triple Top Breakout. The bullish price objective for
AVB has been revised to 75.00 (close to 20 points higher than
Technically speaking AVB looks like a solid play not only for
dividend investors but also for options and long-term traders
like. The stock has boomed six points higher since May 10th,
setting new 52-week highs over the past week of trading. As
noted earlier, AvalonBay has been in a regression channel since
March of 2003 and had not tested the bottom of its channel until
April-May of this year. Once the bottom bar of this channel held
up as support the stock has skyrocketed out of its consolidation
pattern, tacking on point after point along the way.
The weekly chart has just recently sparked a fresh buy signal on
the MACD indicator. The Stochastics indicator has AVB in
overbought territory, yet the stock remains on a buy signal. The
simple 10-DMA is resting just over the 20-DMA which is usually an
indication of further bullishness.
The monthly and quarterly charts looks much the same as the
weekly chart, as the MACD and Stochastics indicators are both
showing buy signals, and the 10-DMA is resting over the 20-DMA.
This ends another exciting episode of the DripAdvisor.com Drip of
the Week. Stay tuned next week, as we will spotlight another
stock worthy of the DripAdvisor.com limelight.
Until Next Week,
Strong Buy 0
Strong Sell 0
Brokers Covering 0
Shares to Qualify = 1
Auto-reinvestment = No
Accept Foreign Accounts: No
Temper Enrollment: Yes
Min/Max Investment = $100-$100,000/quarter
Reinvestment Fees -
Dividend investment fees: $0.00
Cash investment fees: $0.00
Auto reinvestment fees: N/A
First Union Nat'l Bank
2900 Eisenhower Avenue
Suite 300, Third Floor
Alexandria, VA 22314
Phone: (703) 329-6300
Fax: (703) 329-1459