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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.
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.
Kemper in Focus
Headquartered in Chicago, Kemper (KMPR - Free Report) is a Finance stock that has seen a price change of -3.55% 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%. This compares to the Insurance - Multi line industry's yield of 1.81% and the S&P 500's yield of 1.58%.
Looking at dividend growth, the company's current annualized dividend of $1.28 is up 3.2% from last year. Over the last 5 years, Kemper has increased its dividend 2 times on a year-over-year basis for an average annual increase of 0.69%. 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. Kemper's current payout ratio is 20%, meaning 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, with earnings expected to increase 7.64% 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. 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. 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 KMPR is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Are You Looking for a High-Growth Dividend Stock?
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.
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.
Kemper in Focus
Headquartered in Chicago, Kemper (KMPR - Free Report) is a Finance stock that has seen a price change of -3.55% 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%. This compares to the Insurance - Multi line industry's yield of 1.81% and the S&P 500's yield of 1.58%.
Looking at dividend growth, the company's current annualized dividend of $1.28 is up 3.2% from last year. Over the last 5 years, Kemper has increased its dividend 2 times on a year-over-year basis for an average annual increase of 0.69%. 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. Kemper's current payout ratio is 20%, meaning 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, with earnings expected to increase 7.64% 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. 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. 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 KMPR is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).