All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
The Hartford in Focus
Based in Hartford, The Hartford (HIG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -8.76%. The insurance and financial services company is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.44%. This compares to the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.73%.
Looking at dividend growth, the company's current annualized dividend of $1.54 is up 7.3% from last year. Over the last 5 years, The Hartford has increased its dividend 5 times on a year-over-year basis for an average annual increase of 10.22%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. The Hartford's current payout ratio is 21%. This means it paid out 21% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, HIG expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $6.75 per share, which represents a year-over-year growth rate of 9.76%.
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. But, not every company offers 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. With that in mind, HIG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
The Hartford in Focus
Based in Hartford, The Hartford (HIG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -8.76%. The insurance and financial services company is currently shelling out a dividend of $0.38 per share, with a dividend yield of 2.44%. This compares to the Insurance - Multi line industry's yield of 1.71% and the S&P 500's yield of 1.73%.
Looking at dividend growth, the company's current annualized dividend of $1.54 is up 7.3% from last year. Over the last 5 years, The Hartford has increased its dividend 5 times on a year-over-year basis for an average annual increase of 10.22%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. The Hartford's current payout ratio is 21%. This means it paid out 21% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, HIG expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $6.75 per share, which represents a year-over-year growth rate of 9.76%.
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. But, not every company offers 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. With that in mind, HIG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
Get the latest research report on HIG - FREE