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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. However, 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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.
Headquartered in Los Angeles, PCB Bancorp (PCB - Free Report) is a Finance stock that has seen a price change of 2.62% so far this year. Currently paying a dividend of $0.20 per share, the company has a dividend yield of 3.85%. In comparison, the Banks - Southwest industry's yield is 1.33%, while the S&P 500's yield is 1.49%.
Looking at dividend growth, the company's current annualized dividend of $0.80 is up 11.1% from last year. Over the last 5 years, PCB Bancorp has increased its dividend 3 times on a year-over-year basis for an average annual increase of 17.02%. 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. PCB Bancorp's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PCB for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.37 per share, representing a year-over-year earnings growth rate of 36.21%.
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.
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. With that in mind, PCB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
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PCB Bancorp (PCB) 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. However, 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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.
Headquartered in Los Angeles, PCB Bancorp (PCB - Free Report) is a Finance stock that has seen a price change of 2.62% so far this year. Currently paying a dividend of $0.20 per share, the company has a dividend yield of 3.85%. In comparison, the Banks - Southwest industry's yield is 1.33%, while the S&P 500's yield is 1.49%.
Looking at dividend growth, the company's current annualized dividend of $0.80 is up 11.1% from last year. Over the last 5 years, PCB Bancorp has increased its dividend 3 times on a year-over-year basis for an average annual increase of 17.02%. 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. PCB Bancorp's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for PCB for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.37 per share, representing a year-over-year earnings growth rate of 36.21%.
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.
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. With that in mind, PCB is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).