Shares of Kimco Realty closed 3% higher on Monday after the real estate investment trust (REIT) announced a 6.3% hike in its quarterly dividend to $0.17 per share.
Kimco Realty (KIM) said that the new quarterly dividend will be paid on March 24 to shareholders of record as of March 10. Its annual dividend of $0.68 per share now reflects a dividend yield of 3.7%.
On Feb. 11, the company reported better-than-expected 4Q results. Revenues declined 9% year-over-year to $269.4 million but beat the Street’s estimates of $262.9 million. Kimco’s 4Q earnings of $0.45 per share spiked 104.5% year-over-year and topped the consensus forecasts of $0.10 per share.
Funds from operations (FFO) of $0.31 per share beat the Street’s estimates by a penny and declined 13.9% year-over-year. (See Kimco Realty stock analysis on TipRanks)
Following the earnings, Mizuho Securities analyst Haendel St. Juste raised the stock’s price target to $20 (10% upside potential) from $17 and maintained a Buy rating on Feb. 12.
In a note to investors, St. Juste said that the company reported “modest” upside in 4Q. He added that the fiscal 2021 guidance is “better-than-feared though wider-than-expected,” and reflects uncertainty around vaccine distribution and “return to normal” timing.
The Street has a bullish outlook on the stock, with a Strong Buy consensus rating based on 6 Buys and 2 Holds. The average analyst price target of $17.27 implies downside potential of about 5% from current levels.
Furthermore, KIM scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.