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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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.
PCB Bancorp in Focus
Based in Los Angeles, PCB Bancorp (PCB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -10.29%. The company is currently shelling out a dividend of $0.15 per share, with a dividend yield of 3.05%. This compares to the Banks - Southwest industry's yield of 1.56% and the S&P 500's yield of 1.72%.
Looking at dividend growth, the company's current annualized dividend of $0.60 is up 36.4% from last year. PCB Bancorp has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 62.27%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. PCB Bancorp's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PCB for this fiscal year. 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 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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious 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 PCB 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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PCB Bancorp (PCB) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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.
PCB Bancorp in Focus
Based in Los Angeles, PCB Bancorp (PCB - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -10.29%. The company is currently shelling out a dividend of $0.15 per share, with a dividend yield of 3.05%. This compares to the Banks - Southwest industry's yield of 1.56% and the S&P 500's yield of 1.72%.
Looking at dividend growth, the company's current annualized dividend of $0.60 is up 36.4% from last year. PCB Bancorp has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 62.27%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. PCB Bancorp's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PCB for this fiscal year. 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 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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious 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 PCB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).