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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the 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.
Kite Realty Group in Focus
Headquartered in Indianapolis, Kite Realty Group (KRG - Free Report) is a Finance stock that has seen a price change of -12.12% so far this year. The real estate investment trust is currently shelling out a dividend of $0.25 per share, with a dividend yield of 4.98%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.7% and the S&P 500's yield of 1.62%.
Looking at 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%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Kite Realty Group's current payout ratio is 47%. This means it paid out 47% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, KRG expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $2.04 per share, representing a year-over-year earnings growth rate of 0.49%.
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.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. 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 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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Kite Realty Group (KRG) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the 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.
Kite Realty Group in Focus
Headquartered in Indianapolis, Kite Realty Group (KRG - Free Report) is a Finance stock that has seen a price change of -12.12% so far this year. The real estate investment trust is currently shelling out a dividend of $0.25 per share, with a dividend yield of 4.98%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.7% and the S&P 500's yield of 1.62%.
Looking at 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%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Kite Realty Group's current payout ratio is 47%. This means it paid out 47% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, KRG expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $2.04 per share, representing a year-over-year earnings growth rate of 0.49%.
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.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. 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 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).