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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Glen Allen, Atlantic Union (AUB - Free Report) is a Finance stock that has seen a price change of 14.33% so far this year. The holding company for Atlantic Union Bank is currently shelling out a dividend of $0.37 per share, with a dividend yield of 3.67%. This compares to the Banks - Northeast industry's yield of 2.21% and the S&P 500's yield of 1.44%.
Looking at dividend growth, the company's current annualized dividend of $1.48 is up 6.5% from last year. Over the last 5 years, Atlantic Union has increased its dividend 4 times on a year-over-year basis for an average annual increase of 6.64%. 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. Atlantic Union's current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.
AUB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.73 per share, representing a year-over-year earnings growth rate of 8.43%.
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. That said, they can take comfort from the fact that AUB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Are You Looking for a High-Growth Dividend Stock?
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in Glen Allen, Atlantic Union (AUB - Free Report) is a Finance stock that has seen a price change of 14.33% so far this year. The holding company for Atlantic Union Bank is currently shelling out a dividend of $0.37 per share, with a dividend yield of 3.67%. This compares to the Banks - Northeast industry's yield of 2.21% and the S&P 500's yield of 1.44%.
Looking at dividend growth, the company's current annualized dividend of $1.48 is up 6.5% from last year. Over the last 5 years, Atlantic Union has increased its dividend 4 times on a year-over-year basis for an average annual increase of 6.64%. 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. Atlantic Union's current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.
AUB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $3.73 per share, representing a year-over-year earnings growth rate of 8.43%.
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. That said, they can take comfort from the fact that AUB is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).