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.

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.

Allianz SE (ALIZY Quick QuoteALIZY - Free Report) is headquartered in Munich, and is in the Finance sector. The stock has seen a price change of 38.93% since the start of the year. The company is paying out a dividend of $1.18 per share at the moment, with a dividend yield of 2.77% compared to the Insurance - Multi line industry's yield of 1.92% and the S&P 500's yield of 1.53%.

Looking at dividend growth, the company's current annualized dividend of $1.18 is up 15.1% from last year. Over the last 5 years, Allianz SE has increased its dividend 4 times on a year-over-year basis for an average annual increase of 9.02%. 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. Allianz's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.

ALIZY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $3.29 per share, with earnings expected to increase 19.64% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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 ALIZY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).