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INN Dividend Yield Pushes Above 5%

By Dividend Channel Staff, Tuesday, January 8, 3:34 PM ET
Play Video: The Importance of Dividends

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In trading on Tuesday, 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 $8.97 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.

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According to the ETF Finder at ETF Channel, INN makes up 2.65% of the KBW Premium Yield Equity REIT Portfolio ETF (AMEX:KBWY) which is trading relatively unchanged on the day Tuesday.

See what other ETFs contain INN
See what other stocks are held by KBWY

This Article's Word Cloud:   AMEX   Channel   Definition   Dividends   ETFs   Hotel   Importance   KBWY   NYSE   Portfolio   Premium   Properties   Russell   Summit   Tuesday   above   amounts   annual   back   company   comparison   consider   dividend   dividends   downs   each   escape   fillColor   gridColor   gridLocation   have   important   other   over   period   purchased   return   share   shares   stock   that   total   trading   what   whether   with   would   years   yield   your

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