All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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 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.

First Financial Bancorp (FFBC Quick QuoteFFBC - Free Report) is headquartered in Cincinnati, and is in the Finance sector. The stock has seen a price change of 29.1% since the start of the year. The holding company for First Financial Bank is currently shelling out a dividend of $0.25 per share, with a dividend yield of 3.1%. This compares to the Banks - Midwest industry's yield of 2.59% and the S&P 500's yield of 1.41%.

Looking at dividend growth, the company's current annualized dividend of $1.00 is up 2% from last year. Over the last 5 years, First Financial Bancorp has increased its dividend 1 times on a year-over-year basis for an average annual increase of 0.82%. 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. First Financial's current payout ratio is 33%, meaning it paid out 33% of its trailing 12-month EPS as dividend.

FFBC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.20 per share, representing a year-over-year earnings growth rate of 9.22%.

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.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its 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 FFBC is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).