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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.
Northeast Community Bancorp in Focus
Headquartered in White Plains, Northeast Community Bancorp (NECB - Free Report) is a Finance stock that has seen a price change of 6.56% so far this year. The bank holding company is paying out a dividend of $0.24 per share at the moment, with a dividend yield of 2.02% compared to the Banks - Northeast industry's yield of 2.48% and the S&P 500's yield of 1.72%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.24 is up 18.8% from last year. In the past five-year period, Northeast Community Bancorp has increased its dividend 1 times on a year-over-year basis for an average annual increase of 20.90%. 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. Right now, Northeast Community Bancorp's payout ratio is 28%, which means it paid out 28% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, NECB expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $1.18 per share, which represents a year-over-year growth rate of 57.33%.
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. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. 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 NECB 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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Are You Looking for a High-Growth Dividend Stock?
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.
Northeast Community Bancorp in Focus
Headquartered in White Plains, Northeast Community Bancorp (NECB - Free Report) is a Finance stock that has seen a price change of 6.56% so far this year. The bank holding company is paying out a dividend of $0.24 per share at the moment, with a dividend yield of 2.02% compared to the Banks - Northeast industry's yield of 2.48% and the S&P 500's yield of 1.72%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.24 is up 18.8% from last year. In the past five-year period, Northeast Community Bancorp has increased its dividend 1 times on a year-over-year basis for an average annual increase of 20.90%. 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. Right now, Northeast Community Bancorp's payout ratio is 28%, which means it paid out 28% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, NECB expects solid earnings growth. The Zacks Consensus Estimate for 2022 is $1.18 per share, which represents a year-over-year growth rate of 57.33%.
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. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. 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 NECB is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).