Exploring the Sustainability and Prospects of Kimco Realty Corp's Dividends
Kimco Realty Corp (KIM, Financial) has announced an upcoming dividend of $0.24 per share, payable on June 20, 2024, with the ex-dividend date scheduled for June 6, 2024. This announcement has drawn attention not only to the specific dividend but also to the company's history of dividend payments, its yield, and growth rates. By delving into Kimco Realty Corp's dividend performance using GuruFocus data, we can assess the sustainability and future prospects of its dividend distributions.
What Does Kimco Realty Corp Do?
Kimco Realty Corp, one of the oldest real estate investment trusts in the U.S., holds interests in 523 shopping centers across major U.S. markets, covering approximately 77 million square feet of leasable space. This substantial portfolio positions Kimco Realty Corp as a significant player in the commercial real estate sector.
A Glimpse at Kimco Realty Corp's Dividend History
Kimco Realty Corp has upheld a consistent dividend payment tradition since 1992, distributing dividends quarterly. This long-standing practice underlines the company's commitment to returning value to its shareholders.
Below is a visualization of the annual Dividends Per Share, illustrating historical trends.
Breaking Down Kimco Realty Corp's Dividend Yield and Growth
Currently, Kimco Realty Corp boasts a trailing dividend yield of 4.85% and a forward dividend yield of 4.95%, indicating anticipated growth in dividend payments over the next year. Over the past three years, the company's annual dividend growth rate was 19.90%. However, this rate dipped to -4.40% over a five-year period and further to -2.10% over the last decade.
Based on these metrics, the 5-year yield on cost for Kimco Realty Corp's stock is approximately 3.87% today.
The Sustainability Question: Payout Ratio and Profitability
To evaluate the sustainability of its dividends, it's crucial to consider Kimco Realty Corp's payout ratio. The dividend payout ratio of 1.86 as of March 31, 2024, may raise concerns about the long-term sustainability of dividend payments. However, Kimco Realty Corp's profitability rank of 7 out of 10, coupled with a decade of positive net income, suggests robust profitability.
Growth Metrics: The Future Outlook
For dividends to be sustainable, a company must exhibit strong growth metrics. Kimco Realty Corp's growth rank of 7 out of 10 indicates a promising growth trajectory. The company's revenue per share and a 3-year revenue growth rate of 5.60% per year, which outperforms approximately 56.5% of global competitors, support a solid revenue model. Additionally, Kimco Realty Corp's 3-year EPS growth rate of 11.40% per year outperforms about 57.69% of global competitors. However, the 5-year EBITDA growth rate of -1.30% suggests areas for improvement.
Conclusion: Assessing the Dividend's Future
Considering Kimco Realty Corp's consistent dividend history, current yield, and growth rates, along with its profitability and payout ratio, investors should remain cautiously optimistic about the sustainability of dividends. While the payout ratio presents some concerns, the company's solid profitability and growth metrics may buffer potential risks. For those interested in exploring further, GuruFocus Premium provides tools like the High Dividend Yield Screener to discover high-dividend yield stocks.
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.
