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Hancock Whitney (HWC) is a Top Dividend Stock Right Now: Should You Buy?
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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.
Hancock Whitney in Focus
Headquartered in Gulfport, Hancock Whitney (HWC - Free Report) is a Finance stock that has seen a price change of 24.44% so far this year. The holding company of Whitney Bank and Hancock Bank is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 2.5% compared to the Banks - Southeast industry's yield of 1.67% and the S&P 500's yield of 1.96%.
Looking at dividend growth, the company's current annualized dividend of $1.08 is up 5.9% from last year. Hancock Whitney has increased its dividend 1 times on a year-over-year basis over the last 5 years for an average annual increase of 1.28%. 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, Hancock Whitney's payout ratio is 27%, which means it paid out 27% of its trailing 12-month EPS as dividend.
HWC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $4.15 per share, representing a year-over-year earnings growth rate of 4.01%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. 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 HWC 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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Hancock Whitney (HWC) is a Top Dividend Stock Right Now: Should You Buy?
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.
Hancock Whitney in Focus
Headquartered in Gulfport, Hancock Whitney (HWC - Free Report) is a Finance stock that has seen a price change of 24.44% so far this year. The holding company of Whitney Bank and Hancock Bank is paying out a dividend of $0.27 per share at the moment, with a dividend yield of 2.5% compared to the Banks - Southeast industry's yield of 1.67% and the S&P 500's yield of 1.96%.
Looking at dividend growth, the company's current annualized dividend of $1.08 is up 5.9% from last year. Hancock Whitney has increased its dividend 1 times on a year-over-year basis over the last 5 years for an average annual increase of 1.28%. 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, Hancock Whitney's payout ratio is 27%, which means it paid out 27% of its trailing 12-month EPS as dividend.
HWC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2019 is $4.15 per share, representing a year-over-year earnings growth rate of 4.01%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. 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 HWC is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).