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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
CNB Financial in Focus
Headquartered in Clearfield, CNB Financial (CCNE - Free Report) is a Finance stock that has seen a price change of -9.55% so far this year. The bank holding company is currently shelling out a dividend of $0.17 per share, with a dividend yield of 2.92%. This compares to the Banks - Northeast industry's yield of 2.34% and the S&P 500's yield of 1.65%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.70 is up 2.2% from last year. In the past five-year period, CNB Financial has increased its dividend 2 times on a year-over-year basis for an average annual increase of 0.99%. 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. Right now, CNB's payout ratio is 22%, which means it paid out 22% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CCNE expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $3.31 per share, with earnings expected to increase 4.75% from the year ago period.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CCNE is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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CNB Financial (CCNE) Could Be a Great Choice
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
CNB Financial in Focus
Headquartered in Clearfield, CNB Financial (CCNE - Free Report) is a Finance stock that has seen a price change of -9.55% so far this year. The bank holding company is currently shelling out a dividend of $0.17 per share, with a dividend yield of 2.92%. This compares to the Banks - Northeast industry's yield of 2.34% and the S&P 500's yield of 1.65%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.70 is up 2.2% from last year. In the past five-year period, CNB Financial has increased its dividend 2 times on a year-over-year basis for an average annual increase of 0.99%. 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. Right now, CNB's payout ratio is 22%, which means it paid out 22% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CCNE expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $3.31 per share, with earnings expected to increase 4.75% from the year ago period.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CCNE is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).