In trading on Tuesday, shares of Kilroy Realty were yielding above the 6% mark based on its quarterly dividend (annualized to $2.16), with the stock changing hands as low as $35.45 on the day. Dividends play a crucial role for investors as they have historically contributed significantly to the stock market's total return.
For instance, if an investor had purchased shares of the iShares Russell 3000 ETF (IWV) on 5/31/2000 at $78.27 per share, by 5/31/2012, the value per share had decreased to $77.79, resulting in a loss of $0.48 or a 0.6% decrease over twelve years. However, during the same period, the investor would have received $10.77 per share in dividends, boosting the total return to 13.15%. Even with dividends reinvested, the average annual total return would have been around 1.0%. Therefore, a yield above 6% appears attractive if sustainable.
Kilroy Realty is a member of the Russell 3000, indicating its status as one of the largest 3000 companies on the U.S. stock markets. Dividend amounts are not always predictable and are influenced by the profitability of each company. Analyzing the historical dividend chart for Kilroy Realty can provide insights into the likelihood of the current dividend continuing and whether a 6% annual yield is a reasonable expectation.
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