Please ensure Javascript is enabled for purposes of website accessibility

CommonWealth REIT Keeps Dividend Steady

By Eric Volkman - Apr 9, 2013 at 11:36AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Company responds to Corvex/Related Group statement.

CommonWealth REIT (EQC -0.95%) isn't letting a takeover attempt stop it from spreading out its profits. The company this week announced a fresh set of quarterly dividends, most prominently a $0.25-per-share payout for its common stock that will be distributed on or about May 22 to shareholders of record as of April 23.

That dividend matches the company's previous payout, which was disbursed in mid-January.

CommonWealth REIT will also hand out dividends to holders of its series D and E preferred stock. Possessors of the former are to be paid $0.4063 per share, and those of the latter will receive $0.4531. Both dividends will be paid on or about May 15 to stockholders of record as of May 1.

The current common stock dividend annualizes to $1.00 per share for a yield of 4.4% on CommonWealth REIT's current stock price of $22.69.

The company is the subject of an unsolicited takeover bid from investors Corvex Management and Related Fund Management. The bid amounts to $24.50 per share of CommonWealth REIT stock.

CommonWealth released a statement today saying that it is "positioning itself to best capitalize on a rebound in the office building real estate market by realigning the portfolio more towards large ... office properties in urban or [central business district] locations and away from suburban office and industrial properties." The company continues to evaluate the buyout offer.

In its statement today, it characterized the Corvex/Related Group as undertaking "continued efforts to seize control of the Company through their purported offer of $24.50 per share, which is significantly lower than the approximately $40 to $55 per share value they placed on CommonWealth as of February 25, 2013."

link

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Equity Commonwealth Stock Quote
Equity Commonwealth
EQC
$26.04 (-0.95%) $0.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
349%
 
S&P 500 Returns
122%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/18/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.