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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.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
First United Corporation in Focus
Based in Oakland, First United Corporation (FUNC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -14.98%. The company is paying out a dividend of $0.22 per share at the moment, with a dividend yield of 3.07% compared to the Banks - Northeast industry's yield of 2.83% and the S&P 500's yield of 1.59%.
In terms of dividend growth, the company's current annualized dividend of $0.88 is up 7.3% from last year. Over the last 5 years, First United Corporation has increased its dividend 4 times on a year-over-year basis for an average annual increase of 13.04%. 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. First United's current payout ratio is 25%, meaning it paid out 25% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, FUNC expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $3.50 per share, representing a year-over-year earnings growth rate of 9.03%.
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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FUNC 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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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.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
First United Corporation in Focus
Based in Oakland, First United Corporation (FUNC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -14.98%. The company is paying out a dividend of $0.22 per share at the moment, with a dividend yield of 3.07% compared to the Banks - Northeast industry's yield of 2.83% and the S&P 500's yield of 1.59%.
In terms of dividend growth, the company's current annualized dividend of $0.88 is up 7.3% from last year. Over the last 5 years, First United Corporation has increased its dividend 4 times on a year-over-year basis for an average annual increase of 13.04%. 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. First United's current payout ratio is 25%, meaning it paid out 25% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, FUNC expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $3.50 per share, representing a year-over-year earnings growth rate of 9.03%.
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.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FUNC 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).