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This is Why Primo (PRMW) is a Great Dividend Stock
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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. But 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.
Primo in Focus
Based in Tampa, Primo (PRMW - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of -20.93%. Currently paying a dividend of $0.07 per share, the company has a dividend yield of 2.01%. In comparison, the Utility - Water Supply industry's yield is 1.83%, while the S&P 500's yield is 1.62%.
Looking at dividend growth, the company's current annualized dividend of $0.28 is up 16.7% from last year. Over the last 5 years, Primo has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.68%. 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. Primo's current payout ratio is 58%. This means it paid out 58% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, PRMW expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $0.69 per share, with earnings expected to increase 23.21% from the year ago period.
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. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that PRMW 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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This is Why Primo (PRMW) 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 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.
Primo in Focus
Based in Tampa, Primo (PRMW - Free Report) is in the Utilities sector, and so far this year, shares have seen a price change of -20.93%. Currently paying a dividend of $0.07 per share, the company has a dividend yield of 2.01%. In comparison, the Utility - Water Supply industry's yield is 1.83%, while the S&P 500's yield is 1.62%.
Looking at dividend growth, the company's current annualized dividend of $0.28 is up 16.7% from last year. Over the last 5 years, Primo has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.68%. 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. Primo's current payout ratio is 58%. This means it paid out 58% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, PRMW expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $0.69 per share, with earnings expected to increase 23.21% from the year ago period.
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. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that PRMW is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).