We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Western New England Bancorp (WNEB) is a Top Dividend Stock for Your Portfolio
Read MoreHide Full Article
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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.
Western New England Bancorp in Focus
Headquartered in Westfield, Western New England Bancorp (WNEB - Free Report) is a Finance stock that has seen a price change of -4.91% so far this year. The bank holding company is currently shelling out a dividend of $0.06 per share, with a dividend yield of 2.88%. This compares to the Banks - Foreign industry's yield of 4.16% and the S&P 500's yield of 1.69%.
Looking at dividend growth, the company's current annualized dividend of $0.24 is up 20% from last year. Over the last 5 years, Western New England Bancorp has increased its dividend 3 times on a year-over-year basis for an average annual increase of 11.32%. 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. Right now, Western New England Bancorp's payout ratio is 23%, which means it paid out 23% of its trailing 12-month EPS as dividend.
WNEB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $1.03 per share, with earnings expected to increase 0.98% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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. 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 WNEB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Western New England Bancorp (WNEB) is a Top Dividend Stock for Your Portfolio
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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.
Western New England Bancorp in Focus
Headquartered in Westfield, Western New England Bancorp (WNEB - Free Report) is a Finance stock that has seen a price change of -4.91% so far this year. The bank holding company is currently shelling out a dividend of $0.06 per share, with a dividend yield of 2.88%. This compares to the Banks - Foreign industry's yield of 4.16% and the S&P 500's yield of 1.69%.
Looking at dividend growth, the company's current annualized dividend of $0.24 is up 20% from last year. Over the last 5 years, Western New England Bancorp has increased its dividend 3 times on a year-over-year basis for an average annual increase of 11.32%. 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. Right now, Western New England Bancorp's payout ratio is 23%, which means it paid out 23% of its trailing 12-month EPS as dividend.
WNEB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $1.03 per share, with earnings expected to increase 0.98% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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. 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 WNEB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).