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Are You Looking for a High-Growth Dividend Stock? Boeing (BA) 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. However, 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Boeing in Focus
Based in Chicago, Boeing (BA - Free Report) is in the Aerospace sector, and so far this year, shares have seen a price change of 25.63%. Currently paying a dividend of $1.71 per share, the company has a dividend yield of 2.03%. In comparison, the Aerospace - Defense industry's yield is 0.98%, while the S&P 500's yield is 1.98%.
Looking at dividend growth, the company's current annualized dividend of $8.22 is up 20.2% from last year. Boeing has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 22.96%. 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. Boeing's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
BA is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $19.74 per share, with earnings expected to increase 23.30% 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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BA presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).
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Are You Looking for a High-Growth Dividend Stock? Boeing (BA) 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. However, 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Boeing in Focus
Based in Chicago, Boeing (BA - Free Report) is in the Aerospace sector, and so far this year, shares have seen a price change of 25.63%. Currently paying a dividend of $1.71 per share, the company has a dividend yield of 2.03%. In comparison, the Aerospace - Defense industry's yield is 0.98%, while the S&P 500's yield is 1.98%.
Looking at dividend growth, the company's current annualized dividend of $8.22 is up 20.2% from last year. Boeing has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 22.96%. 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. Boeing's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
BA is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $19.74 per share, with earnings expected to increase 23.30% 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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BA presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).