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Are You Looking for a High-Growth Dividend Stock?

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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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Brixmor Property in Focus

Headquartered in New York, Brixmor Property (BRX - Free Report) is a Finance stock that has seen a price change of -4.74% so far this year. The owner and operator of shopping centers is paying out a dividend of $0.29 per share at the moment, with a dividend yield of 4.34% compared to the REIT and Equity Trust - Retail industry's yield of 4.07% and the S&P 500's yield of 1.59%.

Taking a look at the company's dividend growth, its current annualized dividend of $1.15 is up 5.5% from last year. In the past five-year period, Brixmor Property has increased its dividend 3 times on a year-over-year basis for an average annual increase of 4.16%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Brixmor's current payout ratio is 51%. This means it paid out 51% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for BRX for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.23 per share, which represents a year-over-year growth rate of 4.69%.

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. However, not all companies offer 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BRX 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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