April 12, 2025 a 11:30 am
KIM: Dividend Analysis - Kimco Realty Corporation
Kimco Realty Corporation (KIM) offers an interesting dividend profile with a current yield of 4.57% and a long history of 34 consecutive years of dividend payments. Despite challenges reflected in a negative 5-year dividend growth rate, the company maintains its commitment to dividends, which bodes well for long-term investors seeking stability in income generation.
Overview 📊
The following table provides an overview of the key dividend metrics and sector details for Kimco Realty Corporation:
| Metric | Value |
|---|---|
| Sector | Real Estate |
| Dividend yield | 4.57% |
| Current dividend per share | 1.021 USD |
| Dividend history | 34 years |
| Last cut or suspension | None |
Dividend History 🗣️
A well-established dividend history is paramount for investors seeking reliable income. Kimco Realty's consistent dividend payouts over the years underscore its dedication to returning value to shareholders.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.25 |
| 2024 | 0.97 |
| 2023 | 1.02 |
| 2022 | 0.84 |
| 2021 | 0.68 |
Dividend Growth 📈
Dividend growth is a crucial factor that indicates the potential for increased income streams. With a negative 5-year growth rate, caution is advised, though the positive 3-year rate suggests some recent recovery.
| Time | Growth |
|---|---|
| 3 years | 12.57% |
| 5 years | -2.83% |
The average dividend growth is -2.83 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio 📉
The payout ratio helps assess the sustainability of dividend payments. Kimco Realty's EPS-based payout ratio exceeds 100%, implying that dividends may not be fully covered by earnings, which could be a red flag for dividend sustainability.
| Key figure | Ratio |
|---|---|
| EPS-based | 167.25% |
| Free cash flow-based | 69.01% |
The high EPS payout ratio indicates potential risks in maintaining current dividends, while the FCF payout ratio offers some reassurance of cash flow availability.
Cashflow & Capital Efficiency 💰
Analyzing cash flow efficiency provides deeper insights into a company's ability to generate cash relative to its capital investments and operating costs.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.39% | 8.15% | 6.60% |
| Earnings Yield | 2.61% | 4.98% | -0.09% |
Cash flows are stable with good efficiency metrics, though negative earnings yield in 2022 suggests financial volatility.
Balance Sheet & Leverage Analysis ⚠️
A robust balance sheet with manageable leverage is vital for long-term financial health. Kimco Realty shows cautionary leverage ratios that necessitate monitoring.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 80.53% | 81.12% | 76.42% |
| Debt-to-Assets | 42.24% | 42.28% | 40.79% |
The company's strong liquidity ratios offer reassurance against its leverage ratios, providing a safeguard for operations.
Fundamental Strength & Profitability ✅
These metrics determine a firm's profitability and overall financial strength, key indicators for potential growth opportunities and risk management.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 3.86% | 6.87% | -0.13% |
| Net Profit Margin | 20.17% | 36.69% | -0.71% |
Though profitability took a hit in 2022, the company quickly rebounded, suggesting resilience in its operational framework.
Price Development 📈
Dividend Scoring System 🏆
| Criteria | Score | Scale |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 3 | |
| Dividend growth | 2 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 24/40
Rating ⭐
Overall, Kimco Realty Corporation presents a mixed dividend profile. The high yield is attractive, but concerns over dividend growth and payout ratios necessitate a cautious approach. Investors looking for stable income with moderate risk might find an opportunity here, while those focused on growth may look elsewhere.