Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
China Petro&Chm in Focus
Headquartered in Beijing, China Petro&Chm is an Oils-Energy stock that has seen a price change of 10.58% so far this year. Currently paying a dividend of $2.21 per share, the company has a dividend yield of 8.95%. In comparison, the Oil and Gas - Integrated - Emerging Markets industry's yield is 6.37%, while the S&P 500's yield is 1.39%.
Taking a look at the company's dividend growth, its current annualized dividend of $4.41 is up 4.8% from last year. Over the last 5 years, China Petro&Chm has increased its dividend 1 times on a year-over-year basis for an average annual increase of 14.15%. 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. China Petro&Chm's current payout ratio is 44%. This means it paid out 44% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, SNP expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $8.92 per share, which represents a year-over-year growth rate of 115.98%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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, SNP 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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Why China Petro&Chm (SNP) is a Great Dividend Stock Right Now
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
China Petro&Chm in Focus
Headquartered in Beijing, China Petro&Chm is an Oils-Energy stock that has seen a price change of 10.58% so far this year. Currently paying a dividend of $2.21 per share, the company has a dividend yield of 8.95%. In comparison, the Oil and Gas - Integrated - Emerging Markets industry's yield is 6.37%, while the S&P 500's yield is 1.39%.
Taking a look at the company's dividend growth, its current annualized dividend of $4.41 is up 4.8% from last year. Over the last 5 years, China Petro&Chm has increased its dividend 1 times on a year-over-year basis for an average annual increase of 14.15%. 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. China Petro&Chm's current payout ratio is 44%. This means it paid out 44% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, SNP expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $8.92 per share, which represents a year-over-year growth rate of 115.98%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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, SNP 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).