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MetLife (MET) is a Top Dividend Stock Right Now: Should You Buy?
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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.
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.
MetLife in Focus
Headquartered in New York, MetLife (MET - Free Report) is a Finance stock that has seen a price change of -13.07% so far this year. Currently paying a dividend of $0.52 per share, the company has a dividend yield of 3.31%. In comparison, the Insurance - Multi line industry's yield is 2.07%, while the S&P 500's yield is 1.71%.
In terms of dividend growth, the company's current annualized dividend of $2.08 is up 5.1% from last year. In the past five-year period, MetLife has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.44%. 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. Right now, MetLife's payout ratio is 33%, which means it paid out 33% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, MET expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $7.78 per share, which represents a year-over-year growth rate of 13.58%.
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.
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. With that in mind, MET 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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MetLife (MET) is a Top Dividend Stock Right Now: Should You Buy?
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.
MetLife in Focus
Headquartered in New York, MetLife (MET - Free Report) is a Finance stock that has seen a price change of -13.07% so far this year. Currently paying a dividend of $0.52 per share, the company has a dividend yield of 3.31%. In comparison, the Insurance - Multi line industry's yield is 2.07%, while the S&P 500's yield is 1.71%.
In terms of dividend growth, the company's current annualized dividend of $2.08 is up 5.1% from last year. In the past five-year period, MetLife has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.44%. 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. Right now, MetLife's payout ratio is 33%, which means it paid out 33% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, MET expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $7.78 per share, which represents a year-over-year growth rate of 13.58%.
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.
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. With that in mind, MET 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).