All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Voya Financial in Focus
Voya Financial (VOYA - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of 9.27% since the start of the year. Currently paying a dividend of $0.4 per share, the company has a dividend yield of 2.38%. In comparison, the Insurance - Life Insurance industry's yield is 0.06%, while the S&P 500's yield is 1.74%.
In terms of dividend growth, the company's current annualized dividend of $1.60 is up 100% from last year. Voya Financial has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 71.41%. 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. Voya's current payout ratio is 9%. This means it paid out 9% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, VOYA expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $7.94 per share, with earnings expected to increase 4.75% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, VOYA 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. 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Voya Financial in Focus
Voya Financial (VOYA - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of 9.27% since the start of the year. Currently paying a dividend of $0.4 per share, the company has a dividend yield of 2.38%. In comparison, the Insurance - Life Insurance industry's yield is 0.06%, while the S&P 500's yield is 1.74%.
In terms of dividend growth, the company's current annualized dividend of $1.60 is up 100% from last year. Voya Financial has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 71.41%. 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. Voya's current payout ratio is 9%. This means it paid out 9% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, VOYA expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $7.94 per share, with earnings expected to increase 4.75% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, VOYA 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 VOYA - FREE