Yahoo Finance Why Kite Realty Group (KRG) is a Great Dividend Stock Right Now
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Kite Realty Group in Focus
Based in Indianapolis, Kite Realty Group (KRG) is in the Finance sector, and so far this year, shares have seen a price change of -2.58%. The real estate investment trust is paying out a dividend of $0.25 per share at the moment, with a dividend yield of 4.49% compared to the REIT and Equity Trust - Retail industry's yield of 4.53% and the S&P 500's yield of 1.58%.
In terms of dividend growth, the company's current annualized dividend of $1 is up 4.2% from last year. In the past five-year period, Kite Realty Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.39%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Kite Realty Group's current payout ratio is 50%, meaning it paid out 50% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for KRG for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.05 per share, with earnings expected to increase 0.99% from the year ago period.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, KRG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Kite Realty Group Trust (KRG) : Free Stock Analysis Report
