Australia markets closed
  • ALL ORDS

    7,599.90
    -137.00 (-1.77%)
     
  • ASX 200

    7,279.30
    -128.00 (-1.73%)
     
  • AUD/USD

    0.7126
    -0.0064 (-0.89%)
     
  • OIL

    68.15
    -10.24 (-13.06%)
     
  • GOLD

    1,788.10
    +1.20 (+0.07%)
     
  • BTC-AUD

    76,715.28
    +32.37 (+0.04%)
     
  • CMC Crypto 200

    1,365.60
    -89.82 (-6.17%)
     
  • AUD/EUR

    0.6294
    -0.0117 (-1.82%)
     
  • AUD/NZD

    1.0443
    -0.0039 (-0.37%)
     
  • NZX 50

    12,628.89
    -165.72 (-1.30%)
     
  • NASDAQ

    16,025.58
    -342.23 (-2.09%)
     
  • FTSE

    7,044.03
    -266.34 (-3.64%)
     
  • Dow Jones

    34,899.34
    -905.04 (-2.53%)
     
  • DAX

    15,257.04
    -660.94 (-4.15%)
     
  • Hang Seng

    24,080.52
    -659.64 (-2.67%)
     
  • NIKKEI 225

    28,751.62
    -747.66 (-2.53%)
     

Kilroy Realty (KRC) is a Top Dividend Stock Right Now: Should You Buy?

  • Oops!
    Something went wrong.
    Please try again later.
·3-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

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.

Kilroy Realty in Focus

Kilroy Realty (KRC) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of 22.19% since the start of the year. Currently paying a dividend of $0.52 per share, the company has a dividend yield of 2.97%. In comparison, the REIT and Equity Trust - Other industry's yield is 2.98%, while the S&P 500's yield is 1.36%.

In terms of dividend growth, the company's current annualized dividend of $2.08 is up 5.6% from last year. In the past five-year period, Kilroy Realty has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.09%. 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. Right now, Kilroy Realty's payout ratio is 53%, which means it paid out 53% of its trailing 12-month EPS as dividend.

KRC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $3.79 per share, with earnings expected to increase 2.16% from the year ago period.

Bottom Line

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. 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 also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Kilroy Realty Corporation (KRC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting