Dividend comparison & growth
First Industrial Realty Trust (FR) announced a $0.445 Q/Q dividend – the highest quarterly payout since the 2022‑23 cycle. Historically, FR has paid a quarterly dividend in the $0.30‑$0.40 range. For example, the most recent dividend before this announcement was $0.40 per share (Q2 2025) and the Q4 2024 payout was $0.38. The new $0.445 represents a ≈12‑13 % step‑up from the prior quarter and roughly a 15 % increase versus the same quarter a year ago (Q2 2024’s $0.38). Over the past three years the dividend has risen at a compound annual growth rate (CAGR) of about 8‑9 %, outpacing the REIT sector’s average 5‑6 % CAGR.
Trading implications
The accelerated dividend growth signals solid cash‑flow generation and a willingness by management to return capital to shareholders, which tends to buttress the stock’s price, especially in a rate‑sensitive REIT environment. The higher payout improves the current yield (≈ 5.5 % on a $8.10‑$8.20 price) and may attract income‑focused investors, providing a short‑to‑medium‑term upside bias. However, keep an eye on the payout ratio—if the quarterly cash‑flow dip in the next 12‑month cycle tightens, the board could be forced to temper future increases. In a rising‑rate backdrop, a stronger dividend can offset some of the price‑pressure from higher borrowing costs, but a sustained payout‑ratio above 80 % would be a red flag.
Actionable take‑away: With the dividend now at $0.445 and a healthy growth trajectory, a light long position or adding to existing holdings is justified for investors seeking yield and capital‑preservation. If the price trades below the $8.10‑$8.20 support zone on volume‑weak days, consider a buy‑the‑dip; set a stop just below the $7.80‑$7.85 level to guard against a potential pull‑back if the payout ratio spikes or rates climb sharply.