Understanding Kimco Realty Corp's Upcoming Dividend and Historical Performance
Kimco Realty Corp(KIM, Financial) recently announced a dividend of $0.24 per share, payable on 2024-03-21, with the ex-dividend date set for 2024-03-06. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Kimco Realty Corps dividend performance and assess its sustainability.
What Does Kimco Realty Corp Do?
One of the oldest real estate investment trusts in the United States, Kimco Realty owns interests in 5,282 shopping centers throughout major markets in the U.S., representing roughly 77 million square feet.
A Glimpse at Kimco Realty Corp's Dividend History
Kimco Realty Corp has maintained a consistent dividend payment record since 1992. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Kimco Realty Corp's Dividend Yield and Growth
As of today, Kimco Realty Corp currently has a 12-month trailing dividend yield of 4.73% and a 12-month forward dividend yield of 4.90%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Kimco Realty Corp's annual dividend growth rate was 19.90%. Extended to a five-year horizon, this rate decreased to -4.40% per year. And over the past decade, Kimco Realty Corp's annual dividends per share growth rate stands at -2.10%.
Based on Kimco Realty Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Kimco Realty Corp stock as of today is approximately 3.78%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Kimco Realty Corp's dividend payout ratio is 1.45, which may suggest that the company's dividend may not be sustainable.
Kimco Realty Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Kimco Realty Corp's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Kimco Realty Corp's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and Kimco Realty Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Kimco Realty Corp's revenue has increased by approximately 5.60% per year on average, outperforming approximately 64.67% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Kimco Realty Corp's earnings increased by approximately 11.40% per year on average, outperforming approximately 63.83% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -1.30%, which outperforms approximately 38.44% of global competitors.
Concluding Thoughts on Kimco Realty Corp's Dividend Profile
Kimco Realty Corp's upcoming dividend payment, historical dividend stability, and growth metrics paint a picture of a company with a strong commitment to returning value to shareholders. However, the high payout ratio raises questions about the long-term sustainability of these payments. Investors should balance the attractive yield and historical growth against the payout ratio and profitability to determine the best course of action. As the real estate industry evolves, Kimco Realty Corp's strategic positions and financial health will be critical in maintaining its dividend payments.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
