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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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.
COPT Defense in Focus
Based in Columbia, COPT Defense (CDP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -10.79%. Currently paying a dividend of $0.28 per share, the company has a dividend yield of 4.93%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.97%, while the S&P 500's yield is 1.77%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.14 is up 3.6% from last year. Over the last 5 years, COPT Defense has increased its dividend 1 times on a year-over-year basis for an average annual increase of 0.55%. 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. COPT Defense's current payout ratio is 48%, meaning it paid out 48% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CDP expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $2.41 per share, with earnings expected to increase 2.12% 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.
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. That said, they can take comfort from the fact that CDP 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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Are You Looking for a High-Growth Dividend Stock?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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.
COPT Defense in Focus
Based in Columbia, COPT Defense (CDP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -10.79%. Currently paying a dividend of $0.28 per share, the company has a dividend yield of 4.93%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.97%, while the S&P 500's yield is 1.77%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.14 is up 3.6% from last year. Over the last 5 years, COPT Defense has increased its dividend 1 times on a year-over-year basis for an average annual increase of 0.55%. 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. COPT Defense's current payout ratio is 48%, meaning it paid out 48% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CDP expects solid earnings growth. The Zacks Consensus Estimate for 2023 is $2.41 per share, with earnings expected to increase 2.12% 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.
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. That said, they can take comfort from the fact that CDP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).