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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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.
Headquartered in Shelton , Pitney Bowes (PBI - Free Report) is a Computer and Technology stock that has seen a price change of 66.32% so far this year. The mailing equipment and software company is currently shelling out a dividend of $0.10 per share, with a dividend yield of 2.28%. This compares to the Office Automation and Equipment industry's yield of 1.54% and the S&P 500's yield of 1.36%.
Looking at dividend growth, the company's current annualized dividend of $0.40 is up 33.3% from last year. Over the last 5 years, Pitney Bowes has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.90%. 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. Pitney Bowes's current payout ratio is 24%, meaning it paid out 24% of its trailing 12-month EPS as dividend.
PBI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $1.68 per share, representing a year-over-year earnings growth rate of 24.44%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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 PBI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
View the Zacks #1 Rank List
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Are You Looking for a High-Growth Dividend Stock?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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.
Headquartered in Shelton , Pitney Bowes (PBI - Free Report) is a Computer and Technology stock that has seen a price change of 66.32% so far this year. The mailing equipment and software company is currently shelling out a dividend of $0.10 per share, with a dividend yield of 2.28%. This compares to the Office Automation and Equipment industry's yield of 1.54% and the S&P 500's yield of 1.36%.
Looking at dividend growth, the company's current annualized dividend of $0.40 is up 33.3% from last year. Over the last 5 years, Pitney Bowes has increased its dividend 1 times on a year-over-year basis for an average annual increase of 2.90%. 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. Pitney Bowes's current payout ratio is 24%, meaning it paid out 24% of its trailing 12-month EPS as dividend.
PBI is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $1.68 per share, representing a year-over-year earnings growth rate of 24.44%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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 PBI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).