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Are You Looking for a High-Growth Dividend Stock? First Guaranty Bancshares (FGBI) 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.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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.
First Guaranty Bancshares in Focus
Headquartered in Hammond, First Guaranty Bancshares (FGBI - Free Report) is a Finance stock that has seen a price change of 6.6% so far this year. Currently paying a dividend of $0.16 per share, the company has a dividend yield of 2.95%. In comparison, the Banks - Southeast industry's yield is 1.9%, while the S&P 500's yield is 1.46%.
In terms of dividend growth, the company's current annualized dividend of $0.64 is up 7.4% from last year. In the past five-year period, First Guaranty Bancshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 2.03%. 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. First Guaranty Bancshares's current payout ratio is 26%. This means it paid out 26% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for FGBI for this fiscal year. The Zacks Consensus Estimate for 2022 is $2.56 per share, which represents a year-over-year growth rate of 5.79%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. 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. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that FGBI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Are You Looking for a High-Growth Dividend Stock? First Guaranty Bancshares (FGBI) 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.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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.
First Guaranty Bancshares in Focus
Headquartered in Hammond, First Guaranty Bancshares (FGBI - Free Report) is a Finance stock that has seen a price change of 6.6% so far this year. Currently paying a dividend of $0.16 per share, the company has a dividend yield of 2.95%. In comparison, the Banks - Southeast industry's yield is 1.9%, while the S&P 500's yield is 1.46%.
In terms of dividend growth, the company's current annualized dividend of $0.64 is up 7.4% from last year. In the past five-year period, First Guaranty Bancshares has increased its dividend 2 times on a year-over-year basis for an average annual increase of 2.03%. 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. First Guaranty Bancshares's current payout ratio is 26%. This means it paid out 26% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for FGBI for this fiscal year. The Zacks Consensus Estimate for 2022 is $2.56 per share, which represents a year-over-year growth rate of 5.79%.
Bottom Line
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. 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. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that FGBI is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).