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.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Atlantic Union in Focus
Based in Glen Allen, Atlantic Union (AUB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -8.59%. The holding company for Atlantic Union Bank is currently shelling out a dividend of $0.32 per share, with a dividend yield of 3.83%. This compares to the Banks - Northeast industry's yield of 3.03% and the S&P 500's yield of 1.59%.
Looking at dividend growth, the company's current annualized dividend of $1.28 is up 4.9% from last year. Atlantic Union has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 6.60%. 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. Atlantic Union's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
AUB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $3.20 per share, which represents a year-over-year growth rate of 8.47%.
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.
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. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AUB 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.
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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.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Atlantic Union in Focus
Based in Glen Allen, Atlantic Union (AUB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -8.59%. The holding company for Atlantic Union Bank is currently shelling out a dividend of $0.32 per share, with a dividend yield of 3.83%. This compares to the Banks - Northeast industry's yield of 3.03% and the S&P 500's yield of 1.59%.
Looking at dividend growth, the company's current annualized dividend of $1.28 is up 4.9% from last year. Atlantic Union has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 6.60%. 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. Atlantic Union's current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
AUB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $3.20 per share, which represents a year-over-year growth rate of 8.47%.
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.
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. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AUB 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 AUB - FREE