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Why COPT Defense (CDP) is a Great Dividend Stock Right Now
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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.
COPT Defense in Focus
Based in Columbia, COPT Defense (CDP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -4.06%. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 4.8%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.77%, while the S&P 500's yield is 1.61%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.18 is up 3.5% from last year. Over the last 5 years, COPT Defense has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.01%. 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. COPT Defense's current payout ratio is 48%. This means it paid out 48% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CDP expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $2.52 per share, representing a year-over-year earnings growth rate of 4.13%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CDP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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Why COPT Defense (CDP) is a Great Dividend Stock Right Now
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.
COPT Defense in Focus
Based in Columbia, COPT Defense (CDP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -4.06%. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 4.8%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.77%, while the S&P 500's yield is 1.61%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.18 is up 3.5% from last year. Over the last 5 years, COPT Defense has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.01%. 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. COPT Defense's current payout ratio is 48%. This means it paid out 48% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CDP expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $2.52 per share, representing a year-over-year earnings growth rate of 4.13%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CDP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).