Have you ever looked at various stocks and wondered how much you would have made if you bought them five years ago? Here’s a look at one income-producing real estate investment trust (REIT) stock and its performance over the past five years:
Kimco Realty Corp. (NYSE: KIM) is a Jericho, New York-based retail REIT that calls itself “North America’s largest publicly traded owner and operator of open-air grocery-anchored shopping centers and mixed-use assets.” KIM stock has traded on the NYSE since 1991, and Kimco is a member of the S&P 500. Its 554 properties are spread throughout most of the United States.
KIM is primarily known as an income stock, but it’s also had a small amount of appreciation over the last five years. In early September 2017, the stock was $20.30, and the price as of Sept. 9, 2022, is $21.99, a gain of 8.3%. Its 52-week range is from $18.52 to $26.57.
If you had invested $1,000 in KIM in September 2017 at a price of $20.30, you would have 49.26 shares. The quarterly dividend five years ago was $0.27 and was raised to $0.28 by 2018.
However, in 2020, COVID-19 hit brick-and-mortar REITs like Kimco hard, leading to a significant downturn in its revenue and operating income. Expenses also rose. KIM stock lost over 60% of its value within two months and reached a low of $6.90 at the end of March. Soon after, the company announced it would be cutting the quarterly dividend to only 0.10 per share. The company even sought a $375 million unsecured loan to keep its cash flow going strong. Things looked bleak for a while.
But as the economy improved from 2021 to 2022, KIM began raising the dividend again. After three consecutive quarterly raises, the current dividend now stands at $0.22, with an annual yield of 4.0%. After five years of investing in KIM stock, the total of a $1,000 investment would be $1,294.86 or 29.4%. That’s an annual gain of 5.89%.
Some investors who do not need immediate income choose to reinvest their dividends rather than collect the quarterly dividends in their accounts. Those who opted to reinvest KIM’s dividends over the five-year period would have seen their shares grow to 64.56. Total appreciation plus dividends would be 39.84% or 7.96% annually.
For investors looking for a long-term steady income stock with a touch of appreciation, KIM could be a REIT worth investigating.
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