Yahoo Finance Are You Looking for a High-Growth Dividend Stock?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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.
CB Financial Services in Focus
CB Financial Services (CBFV) is headquartered in Carmichaels, and is in the Finance sector. The stock has seen a price change of -8.91% since the start of the year. Currently paying a dividend of $0.25 per share, the company has a dividend yield of 5.12%. In comparison, the Banks - Northeast industry's yield is 3.15%, while the S&P 500's yield is 1.68%.
In terms of dividend growth, the company's current annualized dividend of $1 is up 4.2% from last year. Over the last 5 years, CB Financial Services has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.38%. 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. CB Financial Services's current payout ratio is 43%. This means it paid out 43% of its trailing 12-month EPS as dividend.
CBFV is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2023 is $2.95 per share, representing a year-over-year earnings growth rate of 37.21%.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CBFV 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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CB Financial Services, Inc. (CBFV) : Free Stock Analysis Report
