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Why Kilroy Realty (KRC) is a Great Dividend Stock Right Now
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Kilroy Realty in Focus
Kilroy Realty (KRC - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of -18.18% since the start of the year. The real estate investment trust is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.82% compared to the REIT and Equity Trust - Other industry's yield of 3.6% and the S&P 500's yield of 1.63%.
Looking at dividend growth, the company's current annualized dividend of $2.08 is up 2% from last year. Over the last 5 years, Kilroy Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.70%. 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. Right now, Kilroy Realty's payout ratio is 51%, which means it paid out 51% of its trailing 12-month EPS as dividend.
KRC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $4.51 per share, with earnings expected to increase 15.94% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, KRC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Why Kilroy Realty (KRC) 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 for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Kilroy Realty in Focus
Kilroy Realty (KRC - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of -18.18% since the start of the year. The real estate investment trust is paying out a dividend of $0.52 per share at the moment, with a dividend yield of 3.82% compared to the REIT and Equity Trust - Other industry's yield of 3.6% and the S&P 500's yield of 1.63%.
Looking at dividend growth, the company's current annualized dividend of $2.08 is up 2% from last year. Over the last 5 years, Kilroy Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.70%. 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. Right now, Kilroy Realty's payout ratio is 51%, which means it paid out 51% of its trailing 12-month EPS as dividend.
KRC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $4.51 per share, with earnings expected to increase 15.94% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, KRC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).