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.
SB Financial Group, Inc. (SBFG) Could Be a Great Choice
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 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.
SB Financial Group, Inc. In Focus
Headquartered in Defiance, SB Financial Group, Inc. (SBFG - Free Report) is a Finance stock that has seen a price change of -12.15% so far this year. The company is paying out a dividend of $0.15 per share at the moment, with a dividend yield of 3.27% compared to the Banks - Northeast industry's yield of 2.77% and the S&P 500's yield of 1.58%.
Looking at dividend growth, the company's current annualized dividend of $0.60 is up 7.1% from last year. Over the last 5 years, SB Financial Group, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.97%. 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. SB Financial Group's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
SBFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.03 per share, with earnings expected to increase 18.71% from the year ago period.
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 SBFG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SB Financial Group, Inc. (SBFG) Could Be a Great Choice
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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.
SB Financial Group, Inc. In Focus
Headquartered in Defiance, SB Financial Group, Inc. (SBFG - Free Report) is a Finance stock that has seen a price change of -12.15% so far this year. The company is paying out a dividend of $0.15 per share at the moment, with a dividend yield of 3.27% compared to the Banks - Northeast industry's yield of 2.77% and the S&P 500's yield of 1.58%.
Looking at dividend growth, the company's current annualized dividend of $0.60 is up 7.1% from last year. Over the last 5 years, SB Financial Group, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 9.97%. 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. SB Financial Group's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
SBFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.03 per share, with earnings expected to increase 18.71% from the year ago period.
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 SBFG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).