【eating shrooms on a full stomach】Why Prosperity Bancshares (PB) is a Top Dividend Stock for Your Portfolio
Whether it's through stocks,eating shrooms on a full stomach bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 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.
Prosperity Bancshares in Focus
Based in Houston, Prosperity Bancshares (PB) is in the Finance sector, and so far this year, shares have seen a price change of -8.53%. The financial holding company is paying out a dividend of $0.46 per share at the moment, with a dividend yield of 2.8% compared to the Banks - Southwest industry's yield of 1.47% and the S&P 500's yield of 2.04%.
Looking at dividend growth, the company's current annualized dividend of $1.84 is up 8.9% from last year. In the past five-year period, Prosperity Bancshares has increased its dividend 5 times on a year-over-year basis for an average annual increase of 10.73%. 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. Prosperity Bancshares's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
PB is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2020 is $5.46 per share, representing a year-over-year earnings growth rate of 8.76%.
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. 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 PB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
Prosperity Bancshares, Inc. (PB) : Free Stock Analysis Report
To read this article on Zacks.com click here.
View comments
相关文章
Sonoco Implementing Price Increases for All Rigid Paper Containers and Closures
HARTSVILLE, S.C., May 05, 2020 (GLOBE NEWSWIRE) -- Sonoco (SON), one of the largest global diversifi2024-09-29The unexpected moneymaker in 2018: euro zone government bonds
(Repeats Monday's story with no changes to text)* Politics and pessimism on growth drive bonds yet a2024-09-29Is Verizon Communications Inc. (VZ) A Good Stock To Buy ?
Insider Monkey has processed numerous 13F filings of hedge funds and successful value investors to c2024-09-29No to Bitcoin Cash: OpenNode Rejects Roger Ver’s $1.25m Fund Offer
Bitcoin payment processing startup OpenNode has rejected a $1.5 million investment gesture made by R2024-09-29Guidewire (GWRE) Q3 Earnings & Revenues Top Estimates, Stock Up
Guidewire Software, Inc. GWRE reported third-quarter fiscal 2020 non-GAAP earnings of 9 cents per sh2024-09-29Novo Nordisk CEO backs ending drug industry rebate system
COPENHAGEN (Reuters) - The chief executive of drugmaker Novo Nordisk on Friday welcomed a proposal c2024-09-29
最新评论