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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 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.
PCB Bancorp in Focus
PCB Bancorp (PCB - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of -14.66% since the start of the year. The company is paying out a dividend of $0.15 per share at the moment, with a dividend yield of 3.2% compared to the Banks - Southwest industry's yield of 1.63% and the S&P 500's yield of 1.81%.
In terms of dividend growth, the company's current annualized dividend of $0.60 is up 36.4% from last year. Over the last 5 years, PCB Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 62.27%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. PCB Bancorp's current payout ratio is 22%. This means it paid out 22% of its trailing 12-month EPS as dividend.
PCB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $2.68 per share, which represents a year-over-year growth rate of 2.29%.
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. But, not every company offers 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PCB 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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Are You Looking for a High-Growth 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 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.
PCB Bancorp in Focus
PCB Bancorp (PCB - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of -14.66% since the start of the year. The company is paying out a dividend of $0.15 per share at the moment, with a dividend yield of 3.2% compared to the Banks - Southwest industry's yield of 1.63% and the S&P 500's yield of 1.81%.
In terms of dividend growth, the company's current annualized dividend of $0.60 is up 36.4% from last year. Over the last 5 years, PCB Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 62.27%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. PCB Bancorp's current payout ratio is 22%. This means it paid out 22% of its trailing 12-month EPS as dividend.
PCB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $2.68 per share, which represents a year-over-year growth rate of 2.29%.
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. But, not every company offers 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, PCB 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).