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Why CB Financial Services (CBFV) is a Great Dividend Stock Right Now
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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 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.
CB Financial Services in Focus
CB Financial Services (CBFV - Free Report) is headquartered in Carmichaels, and is in the Finance sector. The stock has seen a price change of 1.63% since the start of the year. The holding company for Pennsylvania-based Community Bank is paying out a dividend of $0.24 per share at the moment, with a dividend yield of 4.59% compared to the Banks - Northeast industry's yield of 2.54% and the S&P 500's yield of 1.57%.
In terms of dividend growth, the company's current annualized dividend of $1 is up 4.2% from last year. In the past five-year period, CB Financial Services has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.51%. 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. CB Financial Services's current payout ratio is 45%, meaning it paid out 45% of its trailing 12-month EPS as dividend.
CBFV is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2023 is $3.10 per share, representing a year-over-year earnings growth rate of 44.19%.
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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CBFV presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).
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Why CB Financial Services (CBFV) is a Great Dividend Stock Right Now
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 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.
CB Financial Services in Focus
CB Financial Services (CBFV - Free Report) is headquartered in Carmichaels, and is in the Finance sector. The stock has seen a price change of 1.63% since the start of the year. The holding company for Pennsylvania-based Community Bank is paying out a dividend of $0.24 per share at the moment, with a dividend yield of 4.59% compared to the Banks - Northeast industry's yield of 2.54% and the S&P 500's yield of 1.57%.
In terms of dividend growth, the company's current annualized dividend of $1 is up 4.2% from last year. In the past five-year period, CB Financial Services has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.51%. 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. CB Financial Services's current payout ratio is 45%, meaning it paid out 45% of its trailing 12-month EPS as dividend.
CBFV is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2023 is $3.10 per share, representing a year-over-year earnings growth rate of 44.19%.
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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CBFV presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).