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Heartland Financial (HTLF) Could Be a Great Choice
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Heartland Financial in Focus
Based in Denver, Heartland Financial (HTLF - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -30.16%. Currently paying a dividend of $0.3 per share, the company has a dividend yield of 3.69%. In comparison, the Banks - Midwest industry's yield is 3.53%, while the S&P 500's yield is 1.72%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.20 is up 10.1% from last year. Heartland Financial has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18.63%. 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, Heartland Financial's payout ratio is 24%, which means it paid out 24% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for HTLF for this fiscal year. The Zacks Consensus Estimate for 2023 is $5.01 per share, representing a year-over-year earnings growth rate of 3.09%.
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. However, not all companies offer 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. With that in mind, HTLF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).
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Heartland Financial (HTLF) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Heartland Financial in Focus
Based in Denver, Heartland Financial (HTLF - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -30.16%. Currently paying a dividend of $0.3 per share, the company has a dividend yield of 3.69%. In comparison, the Banks - Midwest industry's yield is 3.53%, while the S&P 500's yield is 1.72%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.20 is up 10.1% from last year. Heartland Financial has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18.63%. 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, Heartland Financial's payout ratio is 24%, which means it paid out 24% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for HTLF for this fiscal year. The Zacks Consensus Estimate for 2023 is $5.01 per share, representing a year-over-year earnings growth rate of 3.09%.
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. However, not all companies offer 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. With that in mind, HTLF is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).