We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
UGI in Focus
Headquartered in King Of Prussia, UGI (UGI - Free Report) is a Utilities stock that has seen a price change of 35.27% so far this year. The natural gas and electric utilities operator. Is currently shelling out a dividend of $0.34 per share, with a dividend yield of 2.92%. This compares to the Utility - Gas Distribution industry's yield of 3.08% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $1.38 is up 5.3% from last year. In the past five-year period, UGI has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.13%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. UGI's current payout ratio is 42%. This means it paid out 42% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UGI expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $3 per share, representing a year-over-year earnings growth rate of 12.36%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer 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. That said, they can take comfort from the fact that UGI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
This is Why UGI (UGI) is a Great Dividend Stock
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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
UGI in Focus
Headquartered in King Of Prussia, UGI (UGI - Free Report) is a Utilities stock that has seen a price change of 35.27% so far this year. The natural gas and electric utilities operator. Is currently shelling out a dividend of $0.34 per share, with a dividend yield of 2.92%. This compares to the Utility - Gas Distribution industry's yield of 3.08% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $1.38 is up 5.3% from last year. In the past five-year period, UGI has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.13%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. UGI's current payout ratio is 42%. This means it paid out 42% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UGI expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $3 per share, representing a year-over-year earnings growth rate of 12.36%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer 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. That said, they can take comfort from the fact that UGI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).