H&R REAL ESTATE INVESTMENT TRUST $24.13 - Toronto symbol HR.UN

H&R REAL ESTATE INVESTMENT TRUST $24.13 (Toronto symbol HR.UN; Units outstanding: 187.3 million; Market cap: $4.4 billion; TSINetwork Rating: Extra Risk; Dividend yield: 5.2%; www.hr-reit.com) has increased its distribution for the 10th consecutive quarter. The REIT began raising its payout in early 2010 with the goal of reaching an annual rate of $1.25 in the fourth quarter of 2012.

The latest increase of 4.2%, to $0.10417 per month from $0.10, lets it achieve that goal.

But its strong cash flow, up 35.1% to $0.50 a unit from $0.37 a year ago, prompted it to go further, raising its distribution by 8%, to $0.1125 per month, or $1.35 a year, starting in January 2013. That gives it a 5.6% yield.

H&R REIT is a buy.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.