Worried About a Recession? This Unstoppable Dividend Stock Has Paid Investors a Growing Passive Income Stream in Each of the Past 4 Downturns.

Core Viewpoint - The Federal Realty Investment Trust (FRT) is positioned to maintain its dividend growth even during economic downturns, having a track record of increasing dividends for 57 consecutive years, the longest in the REIT industry [2]. Company Strategy - Federal Realty focuses on owning, managing, and developing high-quality mixed-use properties and open-air shopping centers in affluent suburban areas, emphasizing quality over quantity in its portfolio [3][5]. - The REIT's portfolio includes 102 properties with 27 million square feet leased to 3,500 commercial tenants and 3,100 residential units, which is smaller compared to competitors like Kimco Realty [4]. Financial Performance - Federal Realty has more than doubled its funds from operations (FFO) per share over the past 20 years, showing resilience during recessions, with a 130% increase since 2005 [5]. - The REIT's strategy includes selling lower-quality properties to reinvest in higher-quality assets, exemplified by the $120 million sale of Third Street Promenade to fund the$215 million acquisition of Virginia Gateway [7]. Growth Drivers - Future growth is supported by accretive acquisitions, such as the recent purchase of Del Monte Shopping Center, which is expected to provide incremental income [8]. - Ongoing redevelopment projects, including a residential development in New Jersey and the Andorra Shopping Center in Pennsylvania, are anticipated to generate mid- to high-single-digit returns [9]. Income Stability - The well-located portfolio of high-quality retail properties allows Federal Realty to achieve steady income growth through high occupancy rates and the ability to raise rents [10]. - The company's focus on quality real estate in affluent areas ensures continued strong occupancy levels and rising rental income, reinforcing its ability to pay dividends through economic cycles [11].