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Are You Looking for a High-Growth Dividend Stock? NexPoint Residential Trust Inc. (NXRT) Could Be a Great Choice
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
NexPoint Residential Trust Inc. In Focus
NexPoint Residential Trust Inc. (NXRT - Free Report) is headquartered in Dallas, and is in the Finance sector. The stock has seen a price change of 0.54% since the start of the year. Currently paying a dividend of $0.34 per share, the company has a dividend yield of 3.21%. In comparison, the REIT and Equity Trust - Residential industry's yield is 3.59%, while the S&P 500's yield is 1.41%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.37 is up 7.1% from last year. Over the last 5 years, NexPoint Residential Trust Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.33%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. NexPoint Residential Trust Inc.'s current payout ratio is 51%, meaning it paid out 51% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for NXRT for this fiscal year. The Zacks Consensus Estimate for 2021 is $2.58 per share, with earnings expected to increase 4.45% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, NXRT presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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Are You Looking for a High-Growth Dividend Stock? NexPoint Residential Trust Inc. (NXRT) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
NexPoint Residential Trust Inc. In Focus
NexPoint Residential Trust Inc. (NXRT - Free Report) is headquartered in Dallas, and is in the Finance sector. The stock has seen a price change of 0.54% since the start of the year. Currently paying a dividend of $0.34 per share, the company has a dividend yield of 3.21%. In comparison, the REIT and Equity Trust - Residential industry's yield is 3.59%, while the S&P 500's yield is 1.41%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.37 is up 7.1% from last year. Over the last 5 years, NexPoint Residential Trust Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.33%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. NexPoint Residential Trust Inc.'s current payout ratio is 51%, meaning it paid out 51% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for NXRT for this fiscal year. The Zacks Consensus Estimate for 2021 is $2.58 per share, with earnings expected to increase 4.45% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, NXRT presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).