INN Dividend Yield Pushes Above 5%

Jan 10 2014, 2:55pm CST | by

Looking at the universe of stocks we cover at Dividend Channel, in trading on Friday, shares of Summit Hotel Properties Inc (NYSE: INN) were yielding above the 5% mark based on its quarterly dividend (annualized to $0.45), with the stock changing hands as low as $8.89 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fast forward to 5/31/2012 and each share was worth $77.79 on that date, a loss of $0.48 or 0.6% decrease over twelve years. But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.0%; so by comparison collecting a yield above 5% would appear considerably attractive if that yield is sustainable. Summit Hotel Properties Inc (NYSE: INN) is a member of the Russell 3000, giving it special status as one of the largest 3000 companies on the U.S. stock markets.

In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Summit Hotel Properties Inc, looking at the history chart for INN below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 5% annual yield.

Click here to find out which 9 other dividend stocks just recently went on sale, at DividendChannel.com »


Special Offer: Free Sample Issue to the Preferred Stock List Newsletter plus 20% OFF your subscription


According to the ETF Finder at ETFChannel.com, INN makes up 2.75% of the KBW Premium Yield Equity REIT Portfolio ETF (AMEX: KBWY) which is trading higher by about 0.9% on the day Friday.

Source: Forbes Business

/>/>
 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Pamela Anderson boycotts ALS Ice Bucket Challenge
Los Angeles, Aug 23 (IANS) Actress Pamela Anderson has refused to take the Ice Bucket Challenge, benefiting the ALS Association.
 
 
Cheers! Rule of thumb can control drinking
New York, Aug 23 (IANS) Did you ever try using a rule of thumb such as a half-glass rule or a two-fingers-from-the-top rule when pouring wine? Do this if you want to keep your weight in check.
 
 
Serotonin can reduce sensitivity to pain
Lisbon, Aug 23 (IANS) Researchers at Portugal's Champalimaud Foundation said Friday that the molecule of serotonin in the organism can diminish sensitivity to pain.
 
 
Pomegranate peel may cure deadly brain disorders
London, Aug 23 (IANS) Do not throw that pomegranate peel in the garbage bin. In the near future, it may be a source of drugs for two incurable diseases that affect the elderly.
 
 
 

Latest from the Network

My children know they are lucky: Julianne Moore
Los Angeles, Aug 23 (IANS) Actress Julianne Moore's children may be privileged to be growing up in a famous household, but they do not take it for granted. The actress, who is married to director Bart Freundlich, has...
Read more on Celebrity Balla
 
Pamela Anderson boycotts ALS Ice Bucket Challenge
Los Angeles, Aug 23 (IANS) Actress Pamela Anderson has refused to take the Ice Bucket Challenge, benefiting the ALS Association. Celebrities like Lady Gaga, Tom Cruise and Mickey Rourke took the challenge, which aims...
Read more on Celebrity Balla
 
Clarke doubtful for tri-series opener
Harare, Aug 23 (IANS) Australian captain Michael Clarke has suffered a hamstring injury and could miss the tri-series opener in Zimbabwe, also involving South Africa, starting Monday in Bulawayo. Clarke picked up the...
Read more on Sport Balla
 
LaBeouf encountered stalker at home, called police
Los Angeles, Aug 23 (IANS) Actor Shia LaBeouf called 911 after coming face-to-face with an intruder at his home here. A woman who'd been stalking him for week was right at his door. Tmz.com reports that the police...
Read more on Celebrity Balla
 
James Gunn praises 'superhero' Dave Bautista
'Guardians of the Galaxy' director James Gunn says Dave Bautista's superhero-like strength was a godsend on set. Bautista rose to international fame through the WWE, before making the transition to the world of cinema...
Read more on Movie Balla
 
Nick Cannon calls it quits
Los Angeles, Aug 23 (IANS) Actor-rapper Nick Cannon has reportedly decided to end his marriage with singer Mariah Carey for the sake of their children. The two married in 2008 and have twins. Tmz.com reports that...
Read more on Celebrity Balla
 
Nick Cannon seems depressed?
Nick Cannon is ''depressed'' over his split from Mariah Carey. The 'America's Got Talent' host, whose shares three-year-old twins, Monroe and Moroccan, with his estranged wife, is said to be very upset despite...
Read more on Celebrity Balla
 
Sofia Vergara is being tortured in the gym
Sofia Vergara claims she is being tortured in the gym ahead of the Emmy Awards. The 'Modern Family' star has intensified her workouts with her personal trainer, Jennifer Yates, as she wants to look in tip-top shape at...
Read more on Celebrity Balla
 
Kate Moss undergoes chilly fat burning treeatment
Kate Moss has been using a Cryotherapy chamber. The 40-year-old supermodel recently went on a break to the LifeCo retreat in Turkey, which she visits several times a year, and during her detox, she was immersed in...
Read more on Celebrity Balla
 
Paul Stanley found strength by opening up
Paul Stanley found strength when he opened up about being bullied as a child. The KISS rocker - who was born with a deformed right ear and suffers from deafness as a result - was subjected to years of taunts by his...
Read more on Celebrity Balla