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Why Allianz SE (ALIZY) is a Top Dividend Stock for Your Portfolio
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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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.
Allianz SE in Focus
Allianz SE (ALIZY - Free Report) is headquartered in Munich, and is in the Finance sector. The stock has seen a price change of 5.55% since the start of the year. The company is paying out a dividend of $0.87 per share at the moment, with a dividend yield of 3.84% compared to the Insurance - Multi line industry's yield of 2.32% and the S&P 500's yield of 1.79%.
Looking at dividend growth, the company's current annualized dividend of $0.87 is up 10.8% from last year. Over the last 5 years, Allianz SE has increased its dividend 2 times on a year-over-year basis for an average annual increase of 2.96%. 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. Allianz SE's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for ALIZY for this fiscal year. The Zacks Consensus Estimate for 2023 is $2.53 per share, representing a year-over-year earnings growth rate of 47.95%.
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. But, not every company offers 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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ALIZY presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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Why Allianz SE (ALIZY) is a Top Dividend Stock for Your Portfolio
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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.
Allianz SE in Focus
Allianz SE (ALIZY - Free Report) is headquartered in Munich, and is in the Finance sector. The stock has seen a price change of 5.55% since the start of the year. The company is paying out a dividend of $0.87 per share at the moment, with a dividend yield of 3.84% compared to the Insurance - Multi line industry's yield of 2.32% and the S&P 500's yield of 1.79%.
Looking at dividend growth, the company's current annualized dividend of $0.87 is up 10.8% from last year. Over the last 5 years, Allianz SE has increased its dividend 2 times on a year-over-year basis for an average annual increase of 2.96%. 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. Allianz SE's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for ALIZY for this fiscal year. The Zacks Consensus Estimate for 2023 is $2.53 per share, representing a year-over-year earnings growth rate of 47.95%.
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. But, not every company offers 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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, ALIZY presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).