Kimco Realty: "Diamond in the Rough"

07/03/2017 2:54 am EST

Focus: REITS

Bryan Perry

Editor, Cash Machine, Premium Income, Quick Income Trader, Instant Income Trader

I view this washout in thee retail sector as a prime opportunity for dividend investors to take a position in a truly blue-chip stock trading at a steep discount, asserts Bryan Perry, dividend investing expert and editor of Cash Machine.

Kimco Realty (KIM) is North America’s largest publicly traded owner and operator of open-air shopping center, with over a 50-year history in shopping center acquisitions, development and management.

It is geographically diversified across 35 states 534 U.S. shopping centers comprising 86 million square feet. It boasts a 95.1% occupancy rate with only 15 tenants with exposure greater than 1.0%

The biggest reason to buy Kimco Realty is that the company has increased its funds from operations and dividends on a consistent basis in the past. For income investors, this has a lot of value.

The real estate investment trust increased its dividend from $0.64 a share in 2010 to $1.02 a share in 2016. In fourth-quarter 2016, the company handed shareholders a 6% dividend increase.

This REIT pays 6.0%. Its share price has declined some 56% during the past 10 months. Let’s do a little deep-value investing in a sector where there are some diamonds in the rough that have rock-solid dividends at levels not seen in years.

The company raised its annual dividend payout by 3 cents to $1.08 per share, or 27 cents per quarter. The next ex-dividend date is July 3 to be entitled to the next payment date slated for July 17.

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