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Huntsman (HUN) is a Top Dividend Stock Right Now: Should You Buy?
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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. 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.
Huntsman in Focus
Based in The Woodlands, Huntsman (HUN - Free Report) is in the Basic Materials sector, and so far this year, shares have seen a price change of 2.31%. Currently paying a dividend of $0.19 per share, the company has a dividend yield of 2.92%. In comparison, the Chemical - Diversified industry's yield is 1.51%, while the S&P 500's yield is 1.36%.
In terms of dividend growth, the company's current annualized dividend of $0.75 is up 15.4% from last year. In the past five-year period, Huntsman has increased its dividend 2 times on a year-over-year basis for an average annual increase of 7.73%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Huntsman's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, HUN expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $3.14 per share, representing a year-over-year earnings growth rate of 220.41%.
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. With that in mind, HUN is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Huntsman (HUN) is a Top Dividend Stock Right Now: Should You Buy?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. 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.
Huntsman in Focus
Based in The Woodlands, Huntsman (HUN - Free Report) is in the Basic Materials sector, and so far this year, shares have seen a price change of 2.31%. Currently paying a dividend of $0.19 per share, the company has a dividend yield of 2.92%. In comparison, the Chemical - Diversified industry's yield is 1.51%, while the S&P 500's yield is 1.36%.
In terms of dividend growth, the company's current annualized dividend of $0.75 is up 15.4% from last year. In the past five-year period, Huntsman has increased its dividend 2 times on a year-over-year basis for an average annual increase of 7.73%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Huntsman's current payout ratio is 32%, meaning it paid out 32% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, HUN expects solid earnings growth. The Zacks Consensus Estimate for 2021 is $3.14 per share, representing a year-over-year earnings growth rate of 220.41%.
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. With that in mind, HUN is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).