Why Is Kilroy Realty's Dividend So High?

Kilroy Realty's (NYSE: KRC) dividend is the highest it has been in more than a decade. Is Wall Street sending out a warning sign that the risk of a dividend cut is high, or is the baby getting thrown out with the bathwater? Here's a quick look at Kilroy's dividend and dividend yield to help figure out the answer.

The average real estate investment trust (REIT), using Vanguard Real Estate Index ETF as a proxy, is yielding around 3.5%. An S&P 500 index ETF offers a tiny 1.5% yield. Kilroy's dividend yield is roughly 5.5% today. That is, as noted above, the highest this REIT's yield has been in more than a decade. Something is going on.

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Source Fool.com