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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 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.
MetLife in Focus
MetLife (MET - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of -13.6% since the start of the year. The insurer is currently shelling out a dividend of $0.52 per share, with a dividend yield of 3.33%. This compares to the Insurance - Multi line industry's yield of 2.18% and the S&P 500's yield of 1.66%.
Taking a look at the company's dividend growth, its current annualized dividend of $2.08 is up 5.1% from last year. MetLife has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 4.44%. 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. MetLife's current payout ratio is 33%. This means it paid out 33% of its trailing 12-month EPS as dividend.
MET is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2023 is $7.78 per share, representing a year-over-year earnings growth rate of 13.58%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. 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, MET 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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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 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.
MetLife in Focus
MetLife (MET - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of -13.6% since the start of the year. The insurer is currently shelling out a dividend of $0.52 per share, with a dividend yield of 3.33%. This compares to the Insurance - Multi line industry's yield of 2.18% and the S&P 500's yield of 1.66%.
Taking a look at the company's dividend growth, its current annualized dividend of $2.08 is up 5.1% from last year. MetLife has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 4.44%. 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. MetLife's current payout ratio is 33%. This means it paid out 33% of its trailing 12-month EPS as dividend.
MET is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2023 is $7.78 per share, representing a year-over-year earnings growth rate of 13.58%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. 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, MET 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).