Unloved REITs To Buy With 30% Upside: Kimco Realty Corp (KIM)
Kimco Realty Corp (NYSE:KIM) owns one of the largest portfolios of grocery-anchored shopping centers in the US, and continues to upgrade the portfolio as part of its 2020 initiative.
The Kimco dividend bumps have been steady over the past five years. There is no reason to expect that to change because of high-occupancy and increasing same-property net operating income, or NOI.
5 Dividend Hikes in 5 Years
The Factset analyst consensus is for 6% FFO per share growth both in 2018 and 2019. Kimco shares are trading at such a low price, that the forward yield is now 5.7%.
Kimco’s Forward Yield at Multi-Year Highs
However, an even better opportunity embedded in KIM shares is the potential for significant price appreciation. Kimco is now trading at multiyear lows of $18.81 per share – while paying shareholders a much higher dividend!
Notably, this past week insiders have also begun to buy KIM shares on the open market.
The analyst consensus target price for Kimco is $26.09, which represents potential price appreciation of 38% — on top of the 5.7% yield today and steady dividend growth. Kimco has a rare BBB+ rating from S&P, a sure sign that this REIT dividend is safe.