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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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Chemung Financial in Focus
Based in Elmira, Chemung Financial (CHMG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -0.84%. The financial holding company is currently shelling out a dividend of $0.32 per share, with a dividend yield of 2.64%. This compares to the Banks - Southeast industry's yield of 2.42% and the S&P 500's yield of 1.54%.
In terms of dividend growth, the company's current annualized dividend of $1.28 is up 3.2% from last year. Chemung Financial has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 3.63%. 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. Chemung Financial's current payout ratio is 27%, meaning it paid out 27% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CHMG expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $5.69 per share, with earnings expected to increase 14.72% 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 CHMG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
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Chemung Financial (CHMG) 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 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Chemung Financial in Focus
Based in Elmira, Chemung Financial (CHMG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -0.84%. The financial holding company is currently shelling out a dividend of $0.32 per share, with a dividend yield of 2.64%. This compares to the Banks - Southeast industry's yield of 2.42% and the S&P 500's yield of 1.54%.
In terms of dividend growth, the company's current annualized dividend of $1.28 is up 3.2% from last year. Chemung Financial has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 3.63%. 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. Chemung Financial's current payout ratio is 27%, meaning it paid out 27% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CHMG expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $5.69 per share, with earnings expected to increase 14.72% 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 CHMG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).