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Why Eagle Bancorp Montana, Inc. (EBMT) 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. 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 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.
Eagle Bancorp Montana, Inc. In Focus
Headquartered in Helena, Eagle Bancorp Montana, Inc. (EBMT - Free Report) is a Finance stock that has seen a price change of -18.94% so far this year. Currently paying a dividend of $0.14 per share, the company has a dividend yield of 4.38%. In comparison, the Banks - Midwest industry's yield is 3.49%, while the S&P 500's yield is 1.6%.
In terms of dividend growth, the company's current annualized dividend of $0.56 is up 0.9% from last year. In the past five-year period, Eagle Bancorp Montana, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.65%. 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. Eagle Bancorp Montana, Inc.'s current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
EBMT is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $1.71 per share, with earnings expected to increase 32.56% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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 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 EBMT 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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Why Eagle Bancorp Montana, Inc. (EBMT) 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. 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 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.
Eagle Bancorp Montana, Inc. In Focus
Headquartered in Helena, Eagle Bancorp Montana, Inc. (EBMT - Free Report) is a Finance stock that has seen a price change of -18.94% so far this year. Currently paying a dividend of $0.14 per share, the company has a dividend yield of 4.38%. In comparison, the Banks - Midwest industry's yield is 3.49%, while the S&P 500's yield is 1.6%.
In terms of dividend growth, the company's current annualized dividend of $0.56 is up 0.9% from last year. In the past five-year period, Eagle Bancorp Montana, Inc. has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.65%. 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. Eagle Bancorp Montana, Inc.'s current payout ratio is 43%, meaning it paid out 43% of its trailing 12-month EPS as dividend.
EBMT is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $1.71 per share, with earnings expected to increase 32.56% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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 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 EBMT is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).