Essex Property Rewards Investors With Another Annual Dividend Hike

Essex Property Trust’s ESS board of directors has approved a 0.8% hike in the annual cash dividend for its common stock. ESS will now pay out a first-quarter cash dividend of $2.59 per share, up from $2.57 paid in the prior quarter. This marks the company’s 32nd consecutive annual dividend increment.

The increased amount will be paid out on April 15 to shareholders on record as of March 31, 2026. Based on the increased rate, the annual dividend comes to $10.36 a share, resulting in an annualized yield of 4.07%, considering ESS’ closing price of $254.43 on Feb. 19.

Solid dividend payouts are the biggest enticements for REIT investors, and ESS is committed to boosting its shareholder wealth. The company increased its dividend five times in the past five years, and its payout has grown 5.14% over the same time period, which is encouraging. Check out Essex Property Trust’s dividend history here.

ESS’ Fundamentals & Financial Performance Support Dividend Payout

Essex Property Trust stands out for its high-quality apartment portfolio and seasoned management team. Its significant concentration in West Coast markets has historically supported steady revenue growth. The region remains a hub for technology, innovation and life sciences companies, which continue to generate employment opportunities and income gains, supporting apartment demand across key coastal metros.

West Coast fundamentals remain compelling. The markets feature higher median household incomes, strong renter penetration and favorable long-term demographics. As return-to-office trends gradually strengthen, leasing momentum is likely to improve. Elevated home prices and mortgage rates also make homeownership less attainable, reinforcing rental housing as a flexible and economically viable option.

Operational discipline further enhances the story. Essex continues to utilize technology investments, scale advantages and internal efficiencies to expand margins and optimize property performance. Ongoing portfolio rebalancing initiatives should position the company for durable growth while maintaining asset quality.

In the fourth quarter of 2025, core FFO totaled $3.98 per share, up from $3.92 in the prior-year period. Total revenues increased 5.5% year over year to $479.6 million, exceeding the Zacks Consensus Estimate. Same-property revenues and NOI rose 3.8%, while financial occupancy improved to 96.3%.

A solid balance sheet adds stability. With $1.7 billion of liquidity and rising cash balances at year-end 2025, Essex maintains ample financial flexibility. These strengths support dividend sustainability and long-term shareholder value despite near-term industry headwinds.

Shares of this Zacks Rank #4 (Sell) company have lost 2.6% over the past three months, wider than the industry’s decline of 0.2%.

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Dividend Hikes by Other REITs

Reliable dividend payouts are the most attractive feature for REIT investors. Recently, Prologis, Inc. PLD recently announced a 5.9% hike in its quarterly cash dividend to $1.07 per share from $1.01 paid out in the prior quarter. The increased dividend will be paid out on March 31 to its shareholders on record as of March 17, 2026. PLD currently has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apart from Essex and Prologis, some other REITs that have announced dividend hikes in recent times are American Homes 4 Rent AMH and Equinix Inc. EQIX. 

AMH declared a first-quarter 2026 dividend of 33 cents per share, up 10% from 30 cents paid earlier. The increased dividend is payable on March 31 to shareholders on record as of March 13, 2026. AMH has a Zacks Rank of 3 (Hold).

Equinix’s board of directors announced a quarterly cash dividend of $5.16 per share, an increment of 10% over the prior-quarter figure. The dividend will be paid out on March 18 to shareholders on record as of Feb. 25, 2026. Equinix currently has a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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