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 Great Dividend Stock Right Now
Read MoreHide Full Article
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
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 -4.79% so far this year. Currently paying a dividend of $0.06 per share, the company has a dividend yield of 2.88%. In comparison, the Banks - Foreign industry's yield is 3.84%, while the S&P 500's yield is 1.69%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.24 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.
Looking at this fiscal year, WNEB expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $1.03 per share, which represents a year-over-year growth rate of 0.98%.
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.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. 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 is also 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 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. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
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 -4.79% so far this year. Currently paying a dividend of $0.06 per share, the company has a dividend yield of 2.88%. In comparison, the Banks - Foreign industry's yield is 3.84%, while the S&P 500's yield is 1.69%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.24 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.
Looking at this fiscal year, WNEB expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $1.03 per share, which represents a year-over-year growth rate of 0.98%.
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.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. 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 is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).