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Why Kemper (KMPR) is a Great Dividend Stock Right Now
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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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Kemper in Focus
Headquartered in Chicago, Kemper (KMPR - Free Report) is a Finance stock that has seen a price change of -7.47% so far this year. The insurance holding company is currently shelling out a dividend of $0.32 per share, with a dividend yield of 2.08%. This compares to the Insurance - Multi line industry's yield of 1.74% and the S&P 500's yield of 1.53%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.28 is up 3.2% from last year. Kemper has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 0.69%. 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, Kemper's payout ratio is 20%, which means it paid out 20% of its trailing 12-month EPS as dividend.
KMPR is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $6.34 per share, representing a year-over-year earnings growth rate of 7.64%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, KMPR 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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Why Kemper (KMPR) is a Great Dividend Stock Right Now
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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Kemper in Focus
Headquartered in Chicago, Kemper (KMPR - Free Report) is a Finance stock that has seen a price change of -7.47% so far this year. The insurance holding company is currently shelling out a dividend of $0.32 per share, with a dividend yield of 2.08%. This compares to the Insurance - Multi line industry's yield of 1.74% and the S&P 500's yield of 1.53%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.28 is up 3.2% from last year. Kemper has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 0.69%. 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, Kemper's payout ratio is 20%, which means it paid out 20% of its trailing 12-month EPS as dividend.
KMPR is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $6.34 per share, representing a year-over-year earnings growth rate of 7.64%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, KMPR 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).