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KB Financial (KB) is a Top Dividend Stock Right Now: Should You Buy?
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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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
KB Financial in Focus
KB Financial (KB - Free Report) is headquartered in Seoul, and is in the Finance sector. The stock has seen a price change of 24.41% since the start of the year. Currently paying a dividend of $0.94 per share, the company has a dividend yield of 7.27%. In comparison, the Banks - Foreign industry's yield is 3.92%, while the S&P 500's yield is 1.56%.
In terms of dividend growth, the company's current annualized dividend of $3.74 is up 311.9% from last year. KB Financial has increased its dividend 1 times on a year-over-year basis over the last 5 years for an average annual increase of 5.20%. 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. KB Financial's current payout ratio is 14%, meaning it paid out 14% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for KB for this fiscal year. The Zacks Consensus Estimate for 2024 is $9.87 per share, with earnings expected to increase 13.97% from the year ago period.
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. But, not every company offers 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. That said, they can take comfort from the fact that KB 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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KB Financial (KB) is a Top Dividend Stock Right Now: Should You Buy?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
KB Financial in Focus
KB Financial (KB - Free Report) is headquartered in Seoul, and is in the Finance sector. The stock has seen a price change of 24.41% since the start of the year. Currently paying a dividend of $0.94 per share, the company has a dividend yield of 7.27%. In comparison, the Banks - Foreign industry's yield is 3.92%, while the S&P 500's yield is 1.56%.
In terms of dividend growth, the company's current annualized dividend of $3.74 is up 311.9% from last year. KB Financial has increased its dividend 1 times on a year-over-year basis over the last 5 years for an average annual increase of 5.20%. 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. KB Financial's current payout ratio is 14%, meaning it paid out 14% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for KB for this fiscal year. The Zacks Consensus Estimate for 2024 is $9.87 per share, with earnings expected to increase 13.97% from the year ago period.
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. But, not every company offers 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. That said, they can take comfort from the fact that KB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).