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Are You Looking for a High-Growth Dividend Stock? Bankwell Financial Group, Inc. (BWFG) Could Be a Great Choice
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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.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Bankwell Financial Group, Inc. In Focus
Headquartered in New Canaan, Bankwell Financial Group, Inc. (BWFG - Free Report) is a Finance stock that has seen a price change of 49.92% so far this year. Currently paying a dividend of $0.18 per share, the company has a dividend yield of 2.46%. In comparison, the Banks - Northeast industry's yield is 2.07%, while the S&P 500's yield is 1.42%.
Looking at dividend growth, the company's current annualized dividend of $0.72 is up 28.6% from last year. Over the last 5 years, Bankwell Financial Group, Inc. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 21.92%. 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. Bankwell Financial Group, Inc.'s current payout ratio is 29%, meaning it paid out 29% of its trailing 12-month EPS as dividend.
BWFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $3.22 per share, with earnings expected to increase 329.33% from the year ago period.
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. But, not every company offers 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BWFG 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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Are You Looking for a High-Growth Dividend Stock? Bankwell Financial Group, Inc. (BWFG) Could Be a Great Choice
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.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Bankwell Financial Group, Inc. In Focus
Headquartered in New Canaan, Bankwell Financial Group, Inc. (BWFG - Free Report) is a Finance stock that has seen a price change of 49.92% so far this year. Currently paying a dividend of $0.18 per share, the company has a dividend yield of 2.46%. In comparison, the Banks - Northeast industry's yield is 2.07%, while the S&P 500's yield is 1.42%.
Looking at dividend growth, the company's current annualized dividend of $0.72 is up 28.6% from last year. Over the last 5 years, Bankwell Financial Group, Inc. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 21.92%. 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. Bankwell Financial Group, Inc.'s current payout ratio is 29%, meaning it paid out 29% of its trailing 12-month EPS as dividend.
BWFG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2021 is $3.22 per share, with earnings expected to increase 329.33% from the year ago period.
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. But, not every company offers 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BWFG 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).