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Hyster-Yale Materials (HY) is a Top Dividend Stock Right Now: Should You Buy?
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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 for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Hyster-Yale Materials in Focus
Based in Cleveland, Hyster-Yale Materials (HY - Free Report) is in the Industrial Products sector, and so far this year, shares have seen a price change of 11.51%. Currently paying a dividend of $0.35 per share, the company has a dividend yield of 2.02%. In comparison, the Manufacturing - Material Handling industry's yield is 0.4%, while the S&P 500's yield is 1.59%.
In terms of dividend growth, the company's current annualized dividend of $1.40 is up 7.9% from last year. Over the last 5 years, Hyster-Yale Materials has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.60%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Hyster-Yale Materials's current payout ratio is 15%, meaning it paid out 15% of its trailing 12-month EPS as dividend.
HY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $7.68 per share, which represents a year-over-year growth rate of 6.08%.
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.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. 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 HY is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).
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Hyster-Yale Materials (HY) is a Top Dividend Stock Right Now: Should You Buy?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Hyster-Yale Materials in Focus
Based in Cleveland, Hyster-Yale Materials (HY - Free Report) is in the Industrial Products sector, and so far this year, shares have seen a price change of 11.51%. Currently paying a dividend of $0.35 per share, the company has a dividend yield of 2.02%. In comparison, the Manufacturing - Material Handling industry's yield is 0.4%, while the S&P 500's yield is 1.59%.
In terms of dividend growth, the company's current annualized dividend of $1.40 is up 7.9% from last year. Over the last 5 years, Hyster-Yale Materials has increased its dividend 3 times on a year-over-year basis for an average annual increase of 0.60%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Hyster-Yale Materials's current payout ratio is 15%, meaning it paid out 15% of its trailing 12-month EPS as dividend.
HY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $7.68 per share, which represents a year-over-year growth rate of 6.08%.
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.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. 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 HY is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).