Highwoods Properties Offers Alluring Dividend Yield Amid Market Volatility

Investors Eye 6% Yield from Highwoods as Historic Dividend Growth Illustrates Value

During trading on Friday, shares of Highwoods Properties, Inc. (Symbol: HIW) yielded over 6% based on its quarterly dividend, which is annualized to $2. The stock price dipped as low as $32.89 for the day. For investors, dividends are a crucial aspect, as they historically contribute significantly to overall stock market returns. For example, if you bought shares of the iShares Russell 3000 ETF (IWV) on May 31, 2000, at $78.27 each, the share price in 2012 would have dropped to $77.79, translating to a loss of $0.48 or a 0.6% decline over twelve years. However, you would have collected $10.77 per share in dividends, improving your overall return to 13.15%. Even with reinvested dividends, this averages to an annual total return of merely about 1.0%. Given this context, a sustainable yield above 6% from a dividend-paying stock like Highwoods Properties is particularly appealing. Highwoods holds a notable position as one of the largest companies in the Russell 3000 index on U.S. stock markets.

Generally, dividends are unpredictable and closely linked to the company’s profitability. Reviewing Highwoods Properties’ historical dividend chart below can provide insights into whether the current dividend is likely to be sustained, and if maintaining a 6% annual yield is a realistic expectation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.