Key Takeaways
- Kimco Realty raised its quarterly dividend 12% to $0.28 a share on Aug. 4, 2026, and Simon Property Group raised its dividend 4.7% to $2.25 a share on Aug. 10.
- Kimco yields 5.1% and Simon yields 4.5%, but Simon’s dividend grew 7.3% a year from fiscal 2020 to fiscal 2025, while Kimco’s grew 4.3%.
- Simon paid out 76% of its AFFO in fiscal 2025 and Kimco paid out 80%, and analysts expect the same ratios for fiscal 2026.
- Kimco carries more debt, at 6.1x net debt to EBITDA over the last twelve months, compared with 5.5x for Simon.
Kimco Realty (KIM) gave income investors a nice surprise this summer. On Aug. 4, it raised its quarterly dividend 12% to $0.28 a share. CEO Conor Flynn explained the timing: “Given our strong cash flow growth this year from the strength of operations, we’re raising our common cash dividend by 12%, a quarter ahead of our typical schedule.”
Six days later, Simon Property Group (SPG) followed with a smaller raise of its own: 4.7%, to $2.25 a quarter. That leaves Kimco with the bigger yield, at 5.1% compared with 4.5% for Simon.
So which landlord is the better dividend stock?
| Metric | Simon Property Group (SPG) | Kimco Realty (KIM) |
|---|---|---|
| Dividend yield | 4.5% | 5.1% |
| Dividend growth, fiscal 2020 to fiscal 2025 | 7.3% a year | 4.3% a year |
| AFFO payout ratio, fiscal 2025 | 76% | 80% |
| AFFO payout ratio, fiscal 2026 consensus | 76% | 80% |
| Net debt / EBITDA, last twelve months | 5.48x | 6.05x |
| Interest coverage (EBIT / interest), last twelve months | 3.07x | 2.25x |
| Price / AFFO, next twelve months | 16.8x | 16.2x |
Simon’s centers are humming
Simon had a strong second quarter in 2026. Real Estate FFO rose 7.9% from a year earlier to $3.29 a share, and portfolio NOI grew 8.3%. Management raised its 2026 outlook for Real Estate FFO to $13.20 to $13.30 a share.
This growth funds the dividend. Simon paid out a comfortable 76% of its AFFO in fiscal 2025. Analysts expect 76% again in fiscal 2026, with AFFO rising 5% to $11.79 a share against $9.01 in dividends.
AFFO has covered the dividend in every year of the last decade. That includes fiscal 2020, when AFFO fell to $8.84 a share and Simon cut its dividend to $6.00.
Fiscal 2025’s 76% sits near the top of the decade’s range, just under fiscal 2019’s 77%. From here, raises have to come from AFFO growth. AFFO went from $11.85 a share in fiscal 2024 to $11.21 in fiscal 2025. CEO Eli Simon says the job is to “grow cash flow growth, grow dividends per share and make our centers better.”
Kimco’s centers are nearly full
Kimco’s leasing is just as strong. Its pro-rata leased occupancy reached 96.4% in the second quarter of 2026, matching its all-time high, and new leases were signed at cash rents 40.4% above the old ones. Management raised its 2026 FFO guidance to $1.83 to $1.84 a share.
The dividend takes a bigger bite, though. Kimco paid out 80% of its AFFO in both fiscal 2024 and fiscal 2025. Analysts expect 80% again in fiscal 2026, with AFFO up 6% to $1.34 a share against $1.07 in dividends. That’s still covered, but with less to spare than Simon has.
Kimco’s decade was also bumpier.
AFFO fell to $0.89 a share in fiscal 2020, and the dividend dropped from $1.12 in fiscal 2019 to $0.68 by fiscal 2021. The new $1.12 annual rate only brings Kimco back to where it paid in fiscal 2018 and fiscal 2019.
Debt is the main risk. Kimco’s net debt is 6.05x its EBITDA, and its EBIT covers interest 2.25x. Kimco has less room if rates rise or tenants struggle.
So which dividend wins?
Simon Property is the better dividend stock. It pays out a smaller share of its AFFO and carries less debt. It has also grown its dividend faster: 7.3% a year from fiscal 2020 to fiscal 2025, and 3.5% a year from fiscal 2015. Kimco’s rates over the same periods were 4.3% and 0.2%.
Both 5-year rates start from the 2020 cuts, so part of each is a rebound. Still, at those rates, $10,000 in Simon pays $450 a year now and about $851 in year 10. The same $10,000 in Kimco pays $510 now and about $742 in year 10. Simon’s income passes Kimco’s around 2031. Call it an 8.5% yield on your cash by year 10.
Kimco has a real case. It pays $60 more a year on $10,000 today, and its 12% raise came early. But for a dividend I want to keep growing, I’d rather own the one with the wider cushion and the lighter debt load.
The 2031 crossover does assume Simon keeps raising its dividend 7.3% a year, and its August raise was 4.7%. Its next few raises will show whether that pace holds.
So what is Simon Property Group stock actually worth?
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Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
