Kennedy-Wilson Holdings Offers Seven Consecutive Years of Rising Dividends (KW)
By: Ned Piplovic,
Kennedy-Wilson Holdings, Inc. (NYSE:KW) has rewarded its shareholders with rising dividends every year since the company initiated distributions in 2011.
The company’s share price has suffered increased volatility and declined nearly 25% over the past few years. However, the share price volatility subsided, and the price has been rising steadily over the past 90 days.
Additionally, the company’s streak of rising dividends has advanced the dividend yield to 3.6%, which is well above the company’s own yield average over the past five years and outperforms the average yields of Kennedy-Wilson’s peers in the sector and industry segment.
Despite a strong rising dividend record, the recent share price decline distanced many income investors from this equity over the past couple of years. However, with the share price back on the rise, income investors should take a closer look and do their own research to confirm whether the rising dividend will tip the scales.
In that case, interested investors should act soon and take advantage of the still-discounted share price by taking a long position in this equity prior to the ex-dividend date on June 28, 2018. The company will distribute its next dividend on the July 5, 2018, pay date to all its shareholders of record prior to the upcoming ex-dividend date.
Kennedy-Wilson Holdings, Inc. (NYSE:KW)
Headquartered in Beverly Hills, California, and founded in 1977, Kennedy-Wilson Holdings, Inc. operates as a real estate investment company. The company owns, operates and invests in real estate on its own and through its investment management platform. Kennedy-Wilson Holdings’ primary focus is multifamily and commercial properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy and Japan. The company owns interest in approximately 53 million square feet of property, including more than 27,000 multifamily rental units and nearly 19 million square feet of commercial property. Kennedy-Wilson Holdings also provides real estate services primarily to financial services clients. Additionally, the company is involved in the development, redevelopment and entitlement of real estate properties, as well as management of real estate properties for third parties. The company initially listed its shares on the NASDAQ exchange in 1992. However, management took the company private in 2004. After just five years of private ownership, the company raised $110 million in an initial public offering (IPO) and has been trading on NYSE since 2009.
Declining since February 2015, the share price entered the trailing 12 months on a downtrend. With exception of few brief spikes, the share price continued to decline another 16.5% before reaching its 52-week low of $16.50 on February 28, 2018. However, after bottoming out at the end of February, the share price embarked on a steady uptrend with considerably lower volatility.
Since the February low, the share price gained 30% before peaking at it 52-week high of $21.00 on June 8, 2018. Since its recent peak, the share price pulled back less than 1% and closed on June 12, 2018 at $20.85. This closing price was nearly 8% higher than it was one year ago, more than 29% above the 52-week low from late-February 2018 and 22% higher than it was five years ago.
The company’s current $0.19 quarterly dividend is nearly 12% higher than the $0.17 quarterly payout from the same period last year. This new quarterly amount converts to an annualized amount of $0.76 and currently yields 3.6%. The company’s rising dividends, as well as the falling share price over the past few years, increased the current dividend yield nearly 60% above the company’s five-year average yield of 2.3%. Additionally, the new yield is also almost 20% higher than the 3% average yield of the entire Financials sector and the Property Management industry segment.
Over the past seven consecutive years of rising dividends, the company advanced its total annual dividend amount 375%, which corresponds to an average growth rate of nearly 25% per year. The rising dividends managed to offset some of the nearly 20% share price decline and limit the total loss over the past three years to 11.3%. However, the share price’s recent gain aided the steadily rising dividends to reward shareholders with a total return of more than 10% over the past 12 months. The total return over the past five years was 38%.
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Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.