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Brixmor Property (BRX) Could Be a Great Choice

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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. 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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.

Based in New York, Brixmor Property (BRX - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -8.26%. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 4.5%. In comparison, the REIT and Equity Trust - Retail industry's yield is 4.22%, while the S&P 500's yield is 1.47%.

Looking at dividend growth, the company's current annualized dividend of $1.15 is up 5.5% from last year. Over the last 5 years, Brixmor Property has increased its dividend 5 times on a year-over-year basis for an average annual increase of 7.56%. 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. Brixmor's current payout ratio is 53%, meaning it paid out 53% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BRX expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $2.22 per share, representing a year-over-year earnings growth rate of 4.23%.

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.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its 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. That said, they can take comfort from the fact that BRX 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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