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CB Financial Services (CBFV) Could Be a Great Choice
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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.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
CB Financial Services in Focus
CB Financial Services (CBFV - Free Report) is headquartered in Carmichaels, and is in the Finance sector. The stock has seen a price change of 8.73% since the start of the year. The holding company for Pennsylvania-based Community Bank is paying out a dividend of $0.25 per share at the moment, with a dividend yield of 4.29% compared to the Banks - Northeast industry's yield of 2.86% and the S&P 500's yield of 1.8%.
Looking at dividend growth, the company's current annualized dividend of $1 is up 4.2% from last year. In the past five-year period, CB Financial Services has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.51%. 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, CB Financial Services's payout ratio is 45%, which means it paid out 45% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CBFV expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $3.10 per share, with earnings expected to increase 44.19% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. 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, CBFV presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).
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CB Financial Services (CBFV) 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.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
CB Financial Services in Focus
CB Financial Services (CBFV - Free Report) is headquartered in Carmichaels, and is in the Finance sector. The stock has seen a price change of 8.73% since the start of the year. The holding company for Pennsylvania-based Community Bank is paying out a dividend of $0.25 per share at the moment, with a dividend yield of 4.29% compared to the Banks - Northeast industry's yield of 2.86% and the S&P 500's yield of 1.8%.
Looking at dividend growth, the company's current annualized dividend of $1 is up 4.2% from last year. In the past five-year period, CB Financial Services has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.51%. 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, CB Financial Services's payout ratio is 45%, which means it paid out 45% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CBFV expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $3.10 per share, with earnings expected to increase 44.19% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. 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, CBFV presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).