Sun Communities Inc (SUI): A Steady Dividend Player Above 3%
Market Insights on Dividend Returns and Historical Performance
In Thursday’s trading, shares of Sun Communities Inc (Symbol: SUI) offered a dividend yield exceeding 3%, based on an annualized dividend of $3.76. On that day, the stock was available for as low as $124.13. For investors, dividends are a crucial factor, as they historically contribute significantly to total market returns. For example, if an investor bought shares of the iShares Russell 3000 ETF (Symbol: IWV) on May 31, 2000, at a price of $78.27, they would have seen the share price decrease to $77.79 by May 31, 2012—a decline of $0.48 or 0.6% over twelve years. However, this investor would have also received $10.77 per share in dividends during that period, leading to an impressive total return of 13.15%. Even when considering reinvested dividends, the average annual total return would be around 1.0%. Therefore, a consistent yield above 3% might seem highly appealing for dividend-focused investors. Sun Communities Inc (SUI) is part of the Russell 3000 Index, marking its standing among the 3,000 largest companies in the U.S. stock market.
Dividend payments are notoriously unpredictable, fluctuating based on each company’s profitability. However, analyzing Sun Communities Inc’s dividend history, as shown in the chart below, can help assess whether the recent dividend is likely to be sustained. This evaluation is essential for considering the viability of expecting a 3% annual yield going forward.
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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.
