On the 13 April 2018, Kite Realty Group Trust (NYSE:KRG) will be paying shareholders an upcoming dividend amount of $0.32 per share. However, investors must have bought the company’s stock before 05 April 2018 in order to qualify for the payment. That means you have only 3 days left! Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? Let’s take a look at Kite Realty Group Trust’s most recent financial data to examine its dividend characteristics in more detail. Check out our latest analysis for Kite Realty Group Trust

5 questions to ask before buying a dividend stock

Whenever I am looking at a potential dividend stock investment, I always check these five metrics:

• Is it paying an annual yield above 75% of dividend payers?

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

• Has it increased its dividend per share amount over the past?

• Is its earnings sufficient to payout dividend at the current rate?

• Will the company be able to keep paying dividend based on the future earnings growth?

How well does Kite Realty Group Trust fit our criteria?

Although REITs are expected to payout a high portion of the earnings, Kite Realty Group Trust currently pays out more than double its net income, meaning that dividend is predominantly funded by retained earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. Dividend payments from Kite Realty Group Trust have been volatile in the past 10 years, with some years experiencing significant drops of over 25%. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves. Relative to peers, Kite Realty Group Trust produces a yield of 8.34%, which is high for REITs stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Kite Realty Group Trust for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. I’ve put together three fundamental factors you should look at: