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Why Kilroy Realty (KRC) is a Top Dividend Stock for Your Portfolio
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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.
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.
Kilroy Realty in Focus
Headquartered in Los Angeles, Kilroy Realty (KRC - Free Report) is a Finance stock that has seen a price change of 12.4% so far this year. Currently paying a dividend of $0.5 per share, the company has a dividend yield of 3.1%. In comparison, the REIT and Equity Trust - Other industry's yield is 3.41%, while the S&P 500's yield is 1.39%.
In terms of dividend growth, the company's current annualized dividend of $2 is up 1.5% 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 7.60%. 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. Kilroy Realty's current payout ratio is 54%. This means it paid out 54% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, KRC expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $4.13 per share, with earnings expected to increase 11.32% 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. However, not all companies offer 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 Top Dividend Stock for Your Portfolio
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.
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.
Kilroy Realty in Focus
Headquartered in Los Angeles, Kilroy Realty (KRC - Free Report) is a Finance stock that has seen a price change of 12.4% so far this year. Currently paying a dividend of $0.5 per share, the company has a dividend yield of 3.1%. In comparison, the REIT and Equity Trust - Other industry's yield is 3.41%, while the S&P 500's yield is 1.39%.
In terms of dividend growth, the company's current annualized dividend of $2 is up 1.5% 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 7.60%. 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. Kilroy Realty's current payout ratio is 54%. This means it paid out 54% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, KRC expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $4.13 per share, with earnings expected to increase 11.32% 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. However, not all companies offer 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).