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This is Why Bankwell Financial Group, Inc. (BWFG) is a Great Dividend Stock
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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 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 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.
Bankwell Financial Group, Inc. In Focus
Headquartered in New Canaan, Bankwell Financial Group, Inc. (BWFG - Free Report) is a Finance stock that has seen a price change of 5.79% so far this year. The company is currently shelling out a dividend of $0.2 per share, with a dividend yield of 2.3%. This compares to the Banks - Northeast industry's yield of 2.24% and the S&P 500's yield of 1.43%.
In terms of dividend growth, the company's current annualized dividend of $0.80 is up 25% from last year. In the past five-year period, Bankwell Financial Group, Inc. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 19.18%. 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. Bankwell Financial Group, Inc.'s current payout ratio is 21%. This means it paid out 21% of its trailing 12-month EPS as dividend.
BWFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $3.55 per share, representing a year-over-year earnings growth rate of 5.65%.
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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BWFG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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This is Why Bankwell Financial Group, Inc. (BWFG) is a Great Dividend Stock
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But 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 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.
Bankwell Financial Group, Inc. In Focus
Headquartered in New Canaan, Bankwell Financial Group, Inc. (BWFG - Free Report) is a Finance stock that has seen a price change of 5.79% so far this year. The company is currently shelling out a dividend of $0.2 per share, with a dividend yield of 2.3%. This compares to the Banks - Northeast industry's yield of 2.24% and the S&P 500's yield of 1.43%.
In terms of dividend growth, the company's current annualized dividend of $0.80 is up 25% from last year. In the past five-year period, Bankwell Financial Group, Inc. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 19.18%. 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. Bankwell Financial Group, Inc.'s current payout ratio is 21%. This means it paid out 21% of its trailing 12-month EPS as dividend.
BWFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $3.55 per share, representing a year-over-year earnings growth rate of 5.65%.
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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BWFG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).