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BCB Bancorp (BCBP) is a Top Dividend Stock Right Now: Should You Buy?
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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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.
BCB Bancorp in Focus
BCB Bancorp (BCBP - Free Report) is headquartered in Bayonne, and is in the Finance sector. The stock has seen a price change of 20.09% since the start of the year. The community bank is currently shelling out a dividend of $0.16 per share, with a dividend yield of 3.45%. This compares to the Banks - Northeast industry's yield of 2.19% and the S&P 500's yield of 1.45%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.64 is up 6.7% from last year. Over the last 5 years, BCB Bancorp has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.46%. 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. Right now, BCB Bancorp's payout ratio is 33%, which means it paid out 33% of its trailing 12-month EPS as dividend.
BCBP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $1.99 per share, which represents a year-over-year growth rate of 3.65%.
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.
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 must be conscious 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 BCBP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
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BCB Bancorp (BCBP) is a Top Dividend Stock Right Now: Should You Buy?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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.
BCB Bancorp in Focus
BCB Bancorp (BCBP - Free Report) is headquartered in Bayonne, and is in the Finance sector. The stock has seen a price change of 20.09% since the start of the year. The community bank is currently shelling out a dividend of $0.16 per share, with a dividend yield of 3.45%. This compares to the Banks - Northeast industry's yield of 2.19% and the S&P 500's yield of 1.45%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.64 is up 6.7% from last year. Over the last 5 years, BCB Bancorp has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.46%. 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. Right now, BCB Bancorp's payout ratio is 33%, which means it paid out 33% of its trailing 12-month EPS as dividend.
BCBP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $1.99 per share, which represents a year-over-year growth rate of 3.65%.
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.
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 must be conscious 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 BCBP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).