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Why Kronos Worldwide (KRO) is a Top Dividend Stock for Your Portfolio
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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 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.
Kronos Worldwide in Focus
Kronos Worldwide (KRO - Free Report) is headquartered in Dallas, and is in the Basic Materials sector. The stock has seen a price change of 1.73% since the start of the year. The maker of titanium dioxide pigments is currently shelling out a dividend of $0.19 per share, with a dividend yield of 4.98%. This compares to the Chemical - Diversified industry's yield of 1.84% and the S&P 500's yield of 1.52%.
In terms of dividend growth, the company's current annualized dividend of $0.76 is up 5.6% from last year. In the past five-year period, Kronos Worldwide has increased its dividend 3 times on a year-over-year basis for an average annual increase of 3.87%. 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, Kronos Worldwide's payout ratio is 58%, which means it paid out 58% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for KRO for this fiscal year. The Zacks Consensus Estimate for 2022 is $1.28 per share, representing a year-over-year earnings growth rate of 30.61%.
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. 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 must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, KRO presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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Why Kronos Worldwide (KRO) is a Top Dividend Stock for Your Portfolio
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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 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.
Kronos Worldwide in Focus
Kronos Worldwide (KRO - Free Report) is headquartered in Dallas, and is in the Basic Materials sector. The stock has seen a price change of 1.73% since the start of the year. The maker of titanium dioxide pigments is currently shelling out a dividend of $0.19 per share, with a dividend yield of 4.98%. This compares to the Chemical - Diversified industry's yield of 1.84% and the S&P 500's yield of 1.52%.
In terms of dividend growth, the company's current annualized dividend of $0.76 is up 5.6% from last year. In the past five-year period, Kronos Worldwide has increased its dividend 3 times on a year-over-year basis for an average annual increase of 3.87%. 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, Kronos Worldwide's payout ratio is 58%, which means it paid out 58% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for KRO for this fiscal year. The Zacks Consensus Estimate for 2022 is $1.28 per share, representing a year-over-year earnings growth rate of 30.61%.
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. 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 must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, KRO presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).