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Are You Looking for a High-Growth Dividend Stock?

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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. However, 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Brixmor Property in Focus

Based in New York, Brixmor Property (BRX - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 16.8%. Currently paying a dividend of $0.27 per share, the company has a dividend yield of 4.01%. In comparison, the REIT and Equity Trust - Retail industry's yield is 3.88%, while the S&P 500's yield is 1.59%.

In terms of dividend growth, the company's current annualized dividend of $1.09 is up 4.8% from last year. Over the last 5 years, Brixmor Property has increased its dividend 4 times on a year-over-year basis for an average annual increase of 0.31%. 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. Brixmor's current payout ratio is 52%, meaning it paid out 52% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for BRX for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.13 per share, which represents a year-over-year growth rate of 4.41%.

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. But, not every company offers 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. That said, they can take comfort from the fact that BRX is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).


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