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Why Agree Realty (ADC) is a Great Dividend Stock Right Now
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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.
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.
Agree Realty in Focus
Headquartered in Bloomfield Hills, Agree Realty (ADC - Free Report) is a Finance stock that has seen a price change of -5.3% so far this year. The real estate investment trust is currently shelling out a dividend of $0.69 per share, with a dividend yield of 4.16%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.79% and the S&P 500's yield of 1.87%.
Taking a look at the company's dividend growth, its current annualized dividend of $2.81 is up 7.9% from last year. Over the last 5 years, Agree Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.70%. 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. Agree Realty's current payout ratio is 0%, meaning it paid out 0% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, ADC expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $3.88 per share, with earnings expected to increase 10.54% from the year ago period.
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.
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, ADC 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 Agree Realty (ADC) is a Great Dividend Stock Right Now
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.
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.
Agree Realty in Focus
Headquartered in Bloomfield Hills, Agree Realty (ADC - Free Report) is a Finance stock that has seen a price change of -5.3% so far this year. The real estate investment trust is currently shelling out a dividend of $0.69 per share, with a dividend yield of 4.16%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.79% and the S&P 500's yield of 1.87%.
Taking a look at the company's dividend growth, its current annualized dividend of $2.81 is up 7.9% from last year. Over the last 5 years, Agree Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.70%. 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. Agree Realty's current payout ratio is 0%, meaning it paid out 0% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, ADC expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $3.88 per share, with earnings expected to increase 10.54% from the year ago period.
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.
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, ADC 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).