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

ICL Group (ICL - Free Report) is headquartered in Tel Aviv, and is in the Basic Materials sector. The stock has seen a price change of -11.03% since the start of the year. Currently paying a dividend of $0.04 per share, the company has a dividend yield of 3.43%. In comparison, the Fertilizers industry's yield is 3.46%, while the S&P 500's yield is 1.42%.

Looking at dividend growth, the company's current annualized dividend of $0.17 is up 4.9% from last year. Over the last 5 years, ICL Group has increased its dividend 2 times on a year-over-year basis for an average annual increase of 6.59%. 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. ICL Group's current payout ratio is 38%, meaning it paid out 38% of its trailing 12-month EPS as dividend.

ICL is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $0.44 per share, which represents a year-over-year growth rate of 22.22%.

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. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that ICL is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).

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