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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Kilroy Realty in Focus
Headquartered in Los Angeles, Kilroy Realty (KRC - Free Report) is a Finance stock that has seen a price change of -38.01% so far this year. The real estate investment trust is paying out a dividend of $0.54 per share at the moment, with a dividend yield of 5.24% compared to the REIT and Equity Trust - Other industry's yield of 4.75% and the S&P 500's yield of 1.81%.
Looking at dividend growth, the company's current annualized dividend of $2.16 is up 5.9% from last year. In the past five-year period, Kilroy Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.46%. Looking ahead, future dividend growth will be dependent on earnings growth and 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 48%, which means it paid out 48% 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 $4.60 per share, which represents a year-over-year growth rate of 18.25%.
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. But, not every company offers 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 have to be mindful 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).
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
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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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Kilroy Realty in Focus
Headquartered in Los Angeles, Kilroy Realty (KRC - Free Report) is a Finance stock that has seen a price change of -38.01% so far this year. The real estate investment trust is paying out a dividend of $0.54 per share at the moment, with a dividend yield of 5.24% compared to the REIT and Equity Trust - Other industry's yield of 4.75% and the S&P 500's yield of 1.81%.
Looking at dividend growth, the company's current annualized dividend of $2.16 is up 5.9% from last year. In the past five-year period, Kilroy Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.46%. Looking ahead, future dividend growth will be dependent on earnings growth and 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 48%, which means it paid out 48% 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 $4.60 per share, which represents a year-over-year growth rate of 18.25%.
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. But, not every company offers 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 have to be mindful 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).
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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