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Are You Looking for a High-Growth Dividend Stock? Riverview Bancorp (RVSB) Could Be a Great Choice
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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.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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.
Riverview Bancorp in Focus
Riverview Bancorp (RVSB - Free Report) is headquartered in Vancouver, and is in the Finance sector. The stock has seen a price change of 36.69% since the start of the year. Currently paying a dividend of $0.05 per share, the company has a dividend yield of 3.06%. In comparison, the Financial - Savings and Loan industry's yield is 2.42%, while the S&P 500's yield is 1.4%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.22 is up 10% from last year. Over the last 5 years, Riverview Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 25.71%. 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. Riverview Bancorp's current payout ratio is 29%, meaning it paid out 29% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for RVSB for this fiscal year. The Zacks Consensus Estimate for 2021 is $0.88 per share, representing a year-over-year earnings growth rate of 87.23%.
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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. 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, RVSB 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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Are You Looking for a High-Growth Dividend Stock? Riverview Bancorp (RVSB) Could Be a Great Choice
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.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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.
Riverview Bancorp in Focus
Riverview Bancorp (RVSB - Free Report) is headquartered in Vancouver, and is in the Finance sector. The stock has seen a price change of 36.69% since the start of the year. Currently paying a dividend of $0.05 per share, the company has a dividend yield of 3.06%. In comparison, the Financial - Savings and Loan industry's yield is 2.42%, while the S&P 500's yield is 1.4%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.22 is up 10% from last year. Over the last 5 years, Riverview Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 25.71%. 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. Riverview Bancorp's current payout ratio is 29%, meaning it paid out 29% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for RVSB for this fiscal year. The Zacks Consensus Estimate for 2021 is $0.88 per share, representing a year-over-year earnings growth rate of 87.23%.
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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. 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, RVSB 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).