Kimco Realty (KIM) will raise its dividend by 60 percent to 16 cents quarterly in Q4 of 2020. The previous quarter the REIT reinstated its quarterly dividend with a payment of $0.10 per share in the third quarter of 2020. Earlier this year Kimco suspended its quarterly dividend because of the COVID-19 pandemic. Previously the shopping center REIT last raised its quarterly dividend by 3.7 percent to $0.28 per share in 2017.
The next dividend is payable on December 23, 2020 to shareholders of record on December 9, 2020. An annual dividend rate of 64 cents will yield 4.3% at a stock price of $14.98. The S&P500 company will now pay an estimated $277 million in dividends to shareholders annually.
From the company's press release: Through the third quarter of 2020, Kimco had paid cash dividends totaling $0.66 per share on its common shares in 2020. This dividend payment, together with dividends previously paid by the company, shall meet Kimco’s taxable income distribution requirements for 2020, as currently projected. The company expects to establish a more normalized and well-covered dividend level based on our adjusted funds from operations and REIT taxable income in 2021.
Kimco Realty Corp. is a real estate investment trust (REIT) headquartered in New Hyde Park, N.Y. The company owns and operates open-air shopping centers in North America. Kimco has specialized in acquisitions, development and management of shopping centers primarily concentrated in the top major metropolitan markets. Kimco Realty Corp had been paying a quarterly dividend to shareholders every year since 1992 before the suspension in 2020.