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AvalonBay Communities, Inc. (NYSE:AVB) is an equity REIT involved in developing, redeveloping, acquiring and managing apartment communities in major 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 expansion regions such as Raleigh-Durham and Charlotte, North Carolina; Southeast Florida; Dallas and Austin, Texas; and Denver, Colorado.

The company is set to report its Q3 2024 earnings on October 23. Wall Street analysts expect the company to post an EPS of $2.71, up from $2.66 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $730.40 million, up from $697.63 million in the year-ago period.

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If You Bought AvalonBay Stock 20 Years Ago

The company's stock traded around $60.10 per share 20 years ago. If you had invested $1,000, you could have bought approximately 17 shares of AvalonBay stock. Currently, shares are trading at $217.04, which means your investment's value could have soared to $3,611 because of stock price appreciation. But wait, the company also paid dividends during these 20 years.

AvalonBay’s dividend yield is currently 3.13%. Over the last 20 years, it paid around $93.64 in dividends per share, which means you could have made $1,558 from dividends alone.

Summing up $3,611 and $1,558, we end up with the final value of your investment, which is $5,169. This is how much you could have made if you had invested $1,000 in AvalonBay stock 20 years ago. This means a total return of 416.9%. However, this is lower than the S&P 500 total return for the same period, which was 574.60%.

What Could The Next 20 Years Bring?

AvalonBay Communities has a consensus rating of Neutral and a price target of $205.48 based on the ratings of 29 analysts. The price target implies a potential downside of around 5% from the current stock price. Following its most recent earnings announcement, several Wall Street analysts adjusted their price targets on the stock. This article by Benzinga covers the 13 analyst perspectives on the stock over the last three months.

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On July 31, AvalonBay Communities announced its Q2 2024 earnings results, posting an EPS of $2.77 and revenues of $726.04 million. Both came in better than the consensus estimates.

The company raised its guidance for 2024 core FFO per share, same-store residential revenues, and net operating income (NOI). AvalonBay now expects core FFO per share in the range of $2.66-$2.76 for Q3 and $10.92-$11.12 for the full year.

Following AvalonBay's 15.4% stock price rally year to date, will it rise further compared with the industry’s upside of 9.8%? The answer to this question can be found in Benzinga's recent piece.

In summary, growth-focused investors won't find AvalonBay attractive, as its stock price appreciation over the last 20 years didn't even reach that of the S&P 500, given the potential 5% downside expected by the analysts. Income-focused investors, however, can benefit from the company's consistent dividend payments, with a solid dividend yield of 3.13%.

This article If You Invested $1,000 In AvalonBay Stock 20 Years Ago, How Much Would You Have Now? originally appeared on Benzinga.com