We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Banco De Chile (BCH) is a Top Dividend Stock for Your Portfolio
Read MoreHide Full Article
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Banco De Chile in Focus
Banco De Chile (BCH - Free Report) is headquartered in Santiago, and is in the Finance sector. The stock has seen a price change of 30.2% since the start of the year. Currently paying a dividend of $1.57 per share, the company has a dividend yield of 5.32%. In comparison, the Banks - Foreign industry's yield is 3.36%, while the S&P 500's yield is 1.59%.
Looking at dividend growth, the company's current annualized dividend of $1.57 is up 27.1% from last year. In the past five-year period, Banco De Chile has increased its dividend 3 times on a year-over-year basis for an average annual increase of 67.08%. 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, Banco De Chile's payout ratio is 55%, which means it paid out 55% of its trailing 12-month EPS as dividend.
BCH is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.54 per share, which represents a year-over-year growth rate of 5.83%.
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.
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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BCH is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Banco De Chile (BCH) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Banco De Chile in Focus
Banco De Chile (BCH - Free Report) is headquartered in Santiago, and is in the Finance sector. The stock has seen a price change of 30.2% since the start of the year. Currently paying a dividend of $1.57 per share, the company has a dividend yield of 5.32%. In comparison, the Banks - Foreign industry's yield is 3.36%, while the S&P 500's yield is 1.59%.
Looking at dividend growth, the company's current annualized dividend of $1.57 is up 27.1% from last year. In the past five-year period, Banco De Chile has increased its dividend 3 times on a year-over-year basis for an average annual increase of 67.08%. 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, Banco De Chile's payout ratio is 55%, which means it paid out 55% of its trailing 12-month EPS as dividend.
BCH is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.54 per share, which represents a year-over-year growth rate of 5.83%.
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.
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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BCH is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).