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This is Why Kilroy Realty (KRC) is a Great Dividend Stock
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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 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.
Kilroy Realty in Focus
Kilroy Realty (KRC - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of 23.57% since the start of the year. The real estate investment trust is currently shelling out a dividend of $0.49 per share, with a dividend yield of 2.5%. This compares to the REIT and Equity Trust - Other industry's yield of 4.12% and the S&P 500's yield of 1.91%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.94 is up 8.4% from last year. Kilroy Realty has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 8.24%. 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, Kilroy Realty's payout ratio is 54%, which means it paid out 54% of its trailing 12-month EPS as dividend.
KRC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $3.75 per share, with earnings expected to increase 7.64% 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.
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. That said, they can take comfort from the fact that KRC 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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This is Why Kilroy Realty (KRC) is a Great Dividend Stock
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 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.
Kilroy Realty in Focus
Kilroy Realty (KRC - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of 23.57% since the start of the year. The real estate investment trust is currently shelling out a dividend of $0.49 per share, with a dividend yield of 2.5%. This compares to the REIT and Equity Trust - Other industry's yield of 4.12% and the S&P 500's yield of 1.91%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.94 is up 8.4% from last year. Kilroy Realty has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 8.24%. 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, Kilroy Realty's payout ratio is 54%, which means it paid out 54% of its trailing 12-month EPS as dividend.
KRC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $3.75 per share, with earnings expected to increase 7.64% 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.
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. That said, they can take comfort from the fact that KRC is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).