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Why Acadia Realty Trust (AKR) is a Top Dividend Stock for Your Portfolio
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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.
Acadia Realty Trust in Focus
Acadia Realty Trust (AKR - Free Report) is headquartered in Rye, and is in the Finance sector. The stock has seen a price change of -19.12% since the start of the year. The real estate investment trust is currently shelling out a dividend of $0.2 per share, with a dividend yield of 4.09%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.41% and the S&P 500's yield of 1.64%.
Looking at dividend growth, the company's current annualized dividend of $0.80 is up 8.1% from last year. Acadia Realty Trust has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 6.36%. 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. Acadia Realty Trust's current payout ratio is 59%. This means it paid out 59% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AKR expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.36 per share, which represents a year-over-year growth rate of 6.25%.
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. That said, they can take comfort from the fact that AKR is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Why Acadia Realty Trust (AKR) is a Top Dividend Stock for Your Portfolio
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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.
Acadia Realty Trust in Focus
Acadia Realty Trust (AKR - Free Report) is headquartered in Rye, and is in the Finance sector. The stock has seen a price change of -19.12% since the start of the year. The real estate investment trust is currently shelling out a dividend of $0.2 per share, with a dividend yield of 4.09%. This compares to the REIT and Equity Trust - Retail industry's yield of 4.41% and the S&P 500's yield of 1.64%.
Looking at dividend growth, the company's current annualized dividend of $0.80 is up 8.1% from last year. Acadia Realty Trust has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 6.36%. 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. Acadia Realty Trust's current payout ratio is 59%. This means it paid out 59% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AKR expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.36 per share, which represents a year-over-year growth rate of 6.25%.
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. That said, they can take comfort from the fact that AKR is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).