Prediction: Buying Federal Realty Today Could Set You Up for Life

There are different ways to invest

Some require taking on a lot of risk, and some seemingly require very little risk

If you are a dividend investor me, you'll bably lean toward the low-risk camp when you try to find income stocks for your portfolio

Here's why this retail-focused real estate investment trust (REIT) could set you up for a lifetime of growing dividends

How attractive is Federal Realty's dividend and dividend record

The average REIT has a yield of 4

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But Federal Realty has increased its dividend annually for 57 consecutive years

That makes this REIT a Dividend King

Dividend Kings constitute a highly elite group of companies that have increased their dividends annually for at least five decades

If you are looking for a reliable dividend stock, starting with the list of Dividend Kings is a great choice

The only REIT on that list is Federal Realty, which ly sets it apart from the rest of the REIT sector in a very positive way

If you are looking for a high-yield stock that you can count on to keep paying you for the rest of your life, Federal Realty is an investment option that you need to know

What does Federal Realty do

As noted, Federal Realty is a REIT that is focused on retail perties

Retail is actually a pretty broad segment of the perty market

Federal Realty's focus is on strip malls and mixed-use developments, with a retail core

These are perties that consumers visit on a regular basis to fulfill basic needs

For example, strip malls usually contain grocery stores that are surrounded by smaller local stores, hair salons

Federal Realty isn't the only REIT in the space

What sets Federal Realty apart is its focus on quality over quantity

On average, the REIT's perties have larger populations and greater wealth than its peers

But that isn't the whole story, either

Federal Realty is an active manager of its portfolio

That means it is always buying and selling perties

More to the point, it is always in its perties to make them instantly work to create value

If it believes it has maxed out the value of a perty, Federal Realty will sell it -- for the right price -- so it can buy a perty where redevelopment will add more value

This is how it has achieved such an impressive dividend record

And it is why long-term dividend investors will want to add this standout REIT to their portfolios

Federal Realty isn't content with just collecting the rent; its goal is constant imvement

Federal Realty doesn't go on sale very often Federal Realty isn't exactly dirt cheap today; that only happens during really bad economic downturns, recessions

If you want to get paid well for the rest of your life by a reliable dividend stock, Federal Realty should bably be at the top of your list right now

At the very least, put it on your wish list so you have the gumption to buy during the next recession

Reuben Gregg Brewer has positions in Federal Realty Investment Trust

The Motley Fool has no position in any of the stocks mentioned

The Motley Fool has a disclosure policy.