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Are You Looking for a High-Growth Dividend Stock?

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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. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

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.

KB Financial (KB - Free Report) is headquartered in Seoul, and is in the Finance sector. The stock has seen a price change of 34.52% since the start of the year. Currently paying a dividend of $0.62 per share, the company has a dividend yield of 2.13%. In comparison, the Banks - Foreign industry's yield is 2.67%, while the S&P 500's yield is 1.31%.

Looking at dividend growth, the company's current annualized dividend of $2.47 is up 22% from last year. Over the last 5 years, KB Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.76%. 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. KB Financial's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.

Earnings growth looks solid for KB for this fiscal year. The Zacks Consensus Estimate for 2026 is $12.92 per share, which represents a year-over-year growth rate of 20.30%.

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.

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. With that in mind, KB presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).

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