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.
WaFd (WAFD) is a Top Dividend Stock Right Now: Should You Buy?
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.
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.
Based in Seattle, WaFd (WAFD - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -0.31%. The holding company for Washington Federal Savings Bank is currently shelling out a dividend of $0.27 per share, with a dividend yield of 3.36%. This compares to the Banks - West industry's yield of 2.99% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.08 is up 0.9% from last year. Over the last 5 years, WaFd has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.27%. 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. WaFd's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.
WAFD is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $3.06 per share, representing a year-over-year earnings growth rate of 12.50%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, WAFD 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).
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
WaFd (WAFD) is a Top Dividend Stock Right Now: Should You Buy?
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.
Based in Seattle, WaFd (WAFD - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -0.31%. The holding company for Washington Federal Savings Bank is currently shelling out a dividend of $0.27 per share, with a dividend yield of 3.36%. This compares to the Banks - West industry's yield of 2.99% and the S&P 500's yield of 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.08 is up 0.9% from last year. Over the last 5 years, WaFd has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.27%. 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. WaFd's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.
WAFD is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $3.06 per share, representing a year-over-year earnings growth rate of 12.50%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, WAFD 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).