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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. But 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Oxford Industries in Focus
Based in Atlanta, Oxford Industries (OXM - Free Report) is in the Consumer Discretionary sector, and so far this year, shares have seen a price change of 4.46%. The owner of the Tommy Bahama, Lilly Pulitzer and Southern Tide clothing lines is paying out a dividend of $0.55 per share at the moment, with a dividend yield of 2.07% compared to the Textile - Apparel industry's yield of 0.13% and the S&P 500's yield of 1.63%.
In terms of dividend growth, the company's current annualized dividend of $2.20 is up 35% from last year. Over the last 5 years, Oxford Industries has increased its dividend 4 times on a year-over-year basis for an average annual increase of 8.90%. 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, Oxford Industries's payout ratio is 22%, which means it paid out 22% of its trailing 12-month EPS as dividend.
OXM is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $10.48 per share, which represents a year-over-year growth rate of 31.16%.
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. 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 OXM 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. But 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Oxford Industries in Focus
Based in Atlanta, Oxford Industries (OXM - Free Report) is in the Consumer Discretionary sector, and so far this year, shares have seen a price change of 4.46%. The owner of the Tommy Bahama, Lilly Pulitzer and Southern Tide clothing lines is paying out a dividend of $0.55 per share at the moment, with a dividend yield of 2.07% compared to the Textile - Apparel industry's yield of 0.13% and the S&P 500's yield of 1.63%.
In terms of dividend growth, the company's current annualized dividend of $2.20 is up 35% from last year. Over the last 5 years, Oxford Industries has increased its dividend 4 times on a year-over-year basis for an average annual increase of 8.90%. 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, Oxford Industries's payout ratio is 22%, which means it paid out 22% of its trailing 12-month EPS as dividend.
OXM is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2022 is $10.48 per share, which represents a year-over-year growth rate of 31.16%.
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. 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 OXM is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).