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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Hanmi Financial (HAFC Quick QuoteHAFC - Free Report) is headquartered in Los Angeles, and is in the Finance sector. The stock has seen a price change of 15.69% since the start of the year. Currently paying a dividend of $0.28 per share, the company has a dividend yield of 3.58%. In comparison, the Banks - West industry's yield is 2.66%, while the S&P 500's yield is 1.44%.

Looking at dividend growth, the company's current annualized dividend of $1.12 is up 3.7% from last year. Over the last 5 years, Hanmi Financial has increased its dividend 3 times on a year-over-year basis for an average annual increase of 26.70%. 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. Hanmi Financial's current payout ratio is 42%, meaning it paid out 42% of its trailing 12-month EPS as dividend.

HAFC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.16 per share, with earnings expected to increase 25.90% from the year ago period.

From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. 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, HAFC presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).