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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.
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.
Kronos Worldwide in Focus
Based in Dallas, Kronos Worldwide (KRO - Free Report) is in the Basic Materials sector, and so far this year, shares have seen a price change of 27.58%. The maker of titanium dioxide pigments is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.97%. This compares to the Chemical - Diversified industry's yield of 1.6% and the S&P 500's yield of 1.61%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.76 is up 5.6% from last year. Kronos Worldwide has increased its dividend 3 times on a year-over-year basis over the last 5 years 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 $2.06 per share, representing a year-over-year earnings growth rate of 110.20%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer 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 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 #1 (Strong 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.
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.
Kronos Worldwide in Focus
Based in Dallas, Kronos Worldwide (KRO - Free Report) is in the Basic Materials sector, and so far this year, shares have seen a price change of 27.58%. The maker of titanium dioxide pigments is currently shelling out a dividend of $0.38 per share, with a dividend yield of 3.97%. This compares to the Chemical - Diversified industry's yield of 1.6% and the S&P 500's yield of 1.61%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.76 is up 5.6% from last year. Kronos Worldwide has increased its dividend 3 times on a year-over-year basis over the last 5 years 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 $2.06 per share, representing a year-over-year earnings growth rate of 110.20%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer 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 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 #1 (Strong Buy).