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Why Invesco (IVZ) is a Great Dividend Stock Right Now
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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 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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.
Invesco in Focus
Based in Atlanta, Invesco (IVZ - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -3.78%. Currently paying a dividend of $0.31 per share, the company has a dividend yield of 7.17%. In comparison, the Financial - Investment Management industry's yield is 2.22%, while the S&P 500's yield is 1.81%.
In terms of dividend growth, the company's current annualized dividend of $1.24 is up 0.8% from last year. Over the last 5 years, Invesco has increased its dividend 5 times on a year-over-year basis for an average annual increase of 3.81%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Invesco's payout ratio is 53%, which means it paid out 53% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for IVZ for this fiscal year. The Zacks Consensus Estimate for 2020 is $2.74 per share, representing a year-over-year earnings growth rate of 7.45%.
Bottom Line
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.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, IVZ presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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Why Invesco (IVZ) is a Great Dividend Stock Right Now
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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.
Invesco in Focus
Based in Atlanta, Invesco (IVZ - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -3.78%. Currently paying a dividend of $0.31 per share, the company has a dividend yield of 7.17%. In comparison, the Financial - Investment Management industry's yield is 2.22%, while the S&P 500's yield is 1.81%.
In terms of dividend growth, the company's current annualized dividend of $1.24 is up 0.8% from last year. Over the last 5 years, Invesco has increased its dividend 5 times on a year-over-year basis for an average annual increase of 3.81%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Invesco's payout ratio is 53%, which means it paid out 53% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for IVZ for this fiscal year. The Zacks Consensus Estimate for 2020 is $2.74 per share, representing a year-over-year earnings growth rate of 7.45%.
Bottom Line
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.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, IVZ presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).