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Why CNB Financial (CCNE) is a Great Dividend Stock Right Now
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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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
CNB Financial in Focus
Headquartered in Clearfield, CNB Financial (CCNE - Free Report) is a Finance stock that has seen a price change of -4.34% so far this year. Currently paying a dividend of $0.17 per share, the company has a dividend yield of 2.76%. In comparison, the Banks - Northeast industry's yield is 2.54%, while the S&P 500's yield is 1.69%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.70 is up 2.2% from last year. Over the last 5 years, CNB Financial has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.02%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. CNB's current payout ratio is 21%. This means it paid out 21% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CCNE for this fiscal year. The Zacks Consensus Estimate for 2022 is $3.48 per share, representing a year-over-year earnings growth rate of 10.13%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. 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 have to be mindful 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 CCNE is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Why CNB Financial (CCNE) 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.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
CNB Financial in Focus
Headquartered in Clearfield, CNB Financial (CCNE - Free Report) is a Finance stock that has seen a price change of -4.34% so far this year. Currently paying a dividend of $0.17 per share, the company has a dividend yield of 2.76%. In comparison, the Banks - Northeast industry's yield is 2.54%, while the S&P 500's yield is 1.69%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.70 is up 2.2% from last year. Over the last 5 years, CNB Financial has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.02%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. CNB's current payout ratio is 21%. This means it paid out 21% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CCNE for this fiscal year. The Zacks Consensus Estimate for 2022 is $3.48 per share, representing a year-over-year earnings growth rate of 10.13%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. 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 have to be mindful 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 CCNE is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).