This Stock Turned $1,000 Into $7,234 Over The Past 20 Years. Is It Too Late To Buy Now?

David Kirakosyan

Tue, Sep 17, 2024, 1:04 PM 4 min read

The company is set to report its Q3 2024 earnings on October 22. Wall Street analysts expect the company to post an EPS of $2.10, up from $1.95 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $161.13 million, up from $146.63 million in the year-ago period.

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If You Bought EastGroup Properties Stock 20 Years Ago

The company's stock traded around $33.26 per share 20 years ago. If you had invested $1,000, you could have bought approximately 30 shares of EastGroup Properties stock. Currently, shares are trading at $189.06, which means your investment's value would have grown to $5,684 due to stock price appreciation. But wait, the company also paid dividends during these 20 years.

EastGroup Properties’ dividend yield is currently 2.99%. Over the last 20 years, it paid around $51.55 in dividends per share, which means you could have made $1,550 from dividends alone.

Summing up $5,684 and $1,550, we end up with the final value of your investment, which is $7,234. This is how much you could have made if you had invested $1,000 in EastGroup Properties stock 20 years ago. This means a total return of 623.4%. In comparison, S&P 500 total return for the same period was 559.13%.

What Could The Next 20 Years Bring?

EastGroup Properties has a consensus rating of "Outperform" and a price target of $192.38 based on the ratings of 21 analysts. The price target implies a nearly 3% potential upside from the current stock price.

Check out this article by Benzinga for a closer look at 11 analyst recommendations for EastGroup stock.

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On July 23, the company reported its Q2 2024 earnings, posting diluted earnings per common share of $1.14, compared to $0.97 for the same period in 2023.

Funds from operations attributable to common stockholders (FFO) were $2.09 per share, an increase of 9.4% compared to $1.91 per share during the same period in 2023.

The company now estimates EPS for 2024 to be between $4.63 and $4.73, with FFO per share estimated between $8.28 and $8.38.

Commenting on EastGroup’s performance, CEO Marshall Loeb stated, “Our strong performance continues as evidenced by FFO per share rising 8.5% for the quarter excluding involuntary conversions. Our portfolio remains resilient, producing a number of other strong metrics, such as our percent leased, year-to-date releasing spreads and same store net operating income growth. The leasing environment is slowly improving, which combined with a shrinking construction pipeline, makes me optimistic about the market in the coming year. Long term, I remain bullish on the continuing external secular trends which benefit our shallow bay, last mile Sunbelt market portfolio.”

Last month, the company announced a 10.2% dividend hike. Is this hike sustainable? Check out this article by Benzinga to learn more.

Growth-focused investors may not find EastGroup Properties stock attractive, given a modest expected upside potential. Conversely, the stock can be a good choice for income-focused investors who benefit from the company's solid dividend yield and consistent hikes. The company has increased or maintained its dividend for 31 consecutive years, with increases in 28 of those years, including each of the last 12 years.

Better Yields Than EastGroup Properties?

The current high-interest-rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.

Arrived Homes, the Jeff Bezos-backed investment platform has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, this one has a minimum investment of only $100.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.

This article This Stock Turned $1,000 Into $7,234 Over The Past 20 Years. Is It Too Late To Buy Now? originally appeared on Benzinga.com

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