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Western New England Bancorp (WNEB) Could Be a Great Choice
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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 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.
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 -4.22% so far this year. The bank holding company is currently shelling out a dividend of $0.06 per share, with a dividend yield of 2.86%. This compares to the Banks - Foreign industry's yield of 4.13% and the S&P 500's yield of 1.78%.
Looking at dividend growth, the company's current annualized dividend of $0.24 is up 20% from last year. In the past five-year period, Western New England Bancorp has increased its dividend 3 times on a year-over-year basis for an average annual increase of 9.94%. 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. 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.
Earnings growth looks solid for WNEB for this fiscal year. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, WNEB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Western New England Bancorp (WNEB) Could Be a Great Choice
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 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.
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 -4.22% so far this year. The bank holding company is currently shelling out a dividend of $0.06 per share, with a dividend yield of 2.86%. This compares to the Banks - Foreign industry's yield of 4.13% and the S&P 500's yield of 1.78%.
Looking at dividend growth, the company's current annualized dividend of $0.24 is up 20% from last year. In the past five-year period, Western New England Bancorp has increased its dividend 3 times on a year-over-year basis for an average annual increase of 9.94%. 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. 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.
Earnings growth looks solid for WNEB for this fiscal year. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, WNEB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).