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Portland General Electric (POR) is a Top Dividend Stock Right Now: Should You Buy?
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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. 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.
Portland General Electric in Focus
Portland General Electric (POR - Free Report) is headquartered in Portland, and is in the Utilities sector. The stock has seen a price change of -2.08% since the start of the year. Currently paying a dividend of $0.41 per share, the company has a dividend yield of 3.89%. In comparison, the Utility - Electric Power industry's yield is 3.22%, while the S&P 500's yield is 1.41%.
In terms of dividend growth, the company's current annualized dividend of $1.63 is up 2.8% from last year. Portland General Electric has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 6.09%. 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. Portland General Electric's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for POR for this fiscal year. The Zacks Consensus Estimate for 2021 is $2.63 per share, which represents a year-over-year growth rate of 52.91%.
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. 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, POR 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).
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Portland General Electric (POR) is a Top Dividend Stock Right Now: Should You Buy?
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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.
Portland General Electric in Focus
Portland General Electric (POR - Free Report) is headquartered in Portland, and is in the Utilities sector. The stock has seen a price change of -2.08% since the start of the year. Currently paying a dividend of $0.41 per share, the company has a dividend yield of 3.89%. In comparison, the Utility - Electric Power industry's yield is 3.22%, while the S&P 500's yield is 1.41%.
In terms of dividend growth, the company's current annualized dividend of $1.63 is up 2.8% from last year. Portland General Electric has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 6.09%. 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. Portland General Electric's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for POR for this fiscal year. The Zacks Consensus Estimate for 2021 is $2.63 per share, which represents a year-over-year growth rate of 52.91%.
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. 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, POR 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).