Exploring the sustainability and growth of Kimco Realty Corp's dividends
Kimco Realty Corp (KIM, Financial) recently announced a dividend of $0.23 per share, payable on 2023-09-21, with the ex-dividend date set for 2023-09-06. As investors eagerly anticipate this upcoming payment, it's crucial to also examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, let's delve into Kimco Realty Corp's dividend performance and assess its sustainability.
Understanding Kimco Realty Corp
Kimco Realty Corp, one of the oldest real estate investment trusts in the United States, owns interests in 532 shopping centers throughout major markets in the U.S., spanning approximately 77 million square feet.
Kimco Realty Corp's Dividend History
Since 1992, Kimco Realty Corp has upheld a consistent dividend payment record, disbursing dividends on a quarterly basis. The chart below illustrates the annual Dividends Per Share for historical trend tracking.
Kimco Realty Corp's Dividend Yield and Growth
As of today, Kimco Realty Corp boasts a 12-month trailing dividend yield of 4.93% and a 12-month forward dividend yield of 4.98%, indicating an expected increase in dividend payments over the next 12 months.
Over the past three years, Kimco Realty Corp's annual dividend growth rate was -9.10%. This rate decreased to -9.60% per year over a five-year horizon. Over the past decade, the company's annual dividends per share growth rate stands at -1.60%.
Considering Kimco Realty Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Kimco Realty Corp stock is approximately 2.98% as of today.
Evaluating Dividend Sustainability: Payout Ratio and Profitability
The dividend payout ratio of Kimco Realty Corp, standing at 1.49 as of 2023-06-30, offers insights into the proportion of earnings the company distributes as dividends. A lower ratio suggests a larger portion of earnings retained, ensuring funds for future growth and unexpected downturns. This high ratio may hint at potential sustainability issues for the company's dividend.
Kimco Realty Corp's profitability rank of 7 out of 10 as of 2023-06-30 suggests robust profitability prospects. The company has reported positive net income each year over the past decade, further solidifying its high profitability.
Future Prospects: Growth Metrics
Kimco Realty Corp's growth rank of 7 out of 10 indicates a strong growth trajectory relative to its competitors. However, the company's revenue and earnings growth rates suggest a mixed performance.
Kimco Realty Corp's revenue per share and 3-year revenue growth rate indicate a strong revenue model, with an average annual increase of approximately 0.60%. This rate underperforms approximately 52.37% of global competitors.
The company's 3-year EPS growth rate showcases its ability to grow earnings, a crucial component for sustaining dividends in the long run. However, Kimco Realty Corp's earnings increased by approximately -41.50% per year on average over the past three years, underperforming approximately 90.29% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of -15.40% underperforms approximately 87.85% of global competitors.
Conclusion
Despite Kimco Realty Corp's consistent dividend payment record and high profitability rank, the company's high payout ratio and mixed growth metrics may raise concerns about the sustainability of its dividends. Investors should closely monitor these factors to make informed decisions. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
