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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.
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
COPT Defense (CDP - Free Report) is headquartered in Columbia, and is in the Finance sector. The stock has seen a price change of -9.6% since the start of the year. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 5.09%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.52%, while the S&P 500's yield is 1.6%.
In terms of dividend growth, the company's current annualized dividend of $1.18 is up 3.5% from last year. COPT Defense has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 1.01%. 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 47%. This means it paid out 47% of its trailing 12-month EPS as dividend.
CDP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $2.50 per share, which represents a year-over-year growth rate of 3.31%.
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.
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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COPT Defense (CDP) Could Be a Great Choice
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.
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
COPT Defense (CDP - Free Report) is headquartered in Columbia, and is in the Finance sector. The stock has seen a price change of -9.6% since the start of the year. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 5.09%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.52%, while the S&P 500's yield is 1.6%.
In terms of dividend growth, the company's current annualized dividend of $1.18 is up 3.5% from last year. COPT Defense has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 1.01%. 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 47%. This means it paid out 47% of its trailing 12-month EPS as dividend.
CDP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $2.50 per share, which represents a year-over-year growth rate of 3.31%.
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.
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).