All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
InvenTrust Properties Corp. (IVT) is headquartered in Downers Grove, and is in the Finance sector. The stock has seen a price change of 14.96% since the start of the year. Currently paying a dividend of $0.25 per share, the company has a dividend yield of 3.08%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.49%, while the S&P 500's yield is 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.00 is up 5.2% from last year. Over the last 5 years, InvenTrust Properties Corp. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.82%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. InvenTrust Properties's current payout ratio is 54%, meaning it paid out 54% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for IVT for this fiscal year. The Zacks Consensus Estimate for 2026 is $2.01 per share, with earnings expected to increase 9.84% from the year ago period.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, IVT is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
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InvenTrust Properties Corp. (IVT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).