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Why Lenovo Group Ltd. (LNVGY) 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 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 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.
Lenovo Group Ltd. In Focus
Headquartered in Hong Kong, Lenovo Group Ltd. (LNVGY - Free Report) is a Computer and Technology stock that has seen a price change of -11.76% so far this year. The company is currently shelling out a dividend of $0.75 per share, with a dividend yield of 6.06%. This compares to the Computer - Micro Computers industry's yield of 1.51% and the S&P 500's yield of 1.64%.
In terms of dividend growth, the company's current annualized dividend of $1.50 is up 61.1% from last year. In the past five-year period, Lenovo Group Ltd. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 1.88%. 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. Lenovo Group's current payout ratio is 23%. This means it paid out 23% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for LNVGY for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.48 per share, representing a year-over-year earnings growth rate of 54.04%.
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.
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 must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, LNVGY 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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Why Lenovo Group Ltd. (LNVGY) 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 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 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.
Lenovo Group Ltd. In Focus
Headquartered in Hong Kong, Lenovo Group Ltd. (LNVGY - Free Report) is a Computer and Technology stock that has seen a price change of -11.76% so far this year. The company is currently shelling out a dividend of $0.75 per share, with a dividend yield of 6.06%. This compares to the Computer - Micro Computers industry's yield of 1.51% and the S&P 500's yield of 1.64%.
In terms of dividend growth, the company's current annualized dividend of $1.50 is up 61.1% from last year. In the past five-year period, Lenovo Group Ltd. has increased its dividend 4 times on a year-over-year basis for an average annual increase of 1.88%. 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. Lenovo Group's current payout ratio is 23%. This means it paid out 23% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for LNVGY for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.48 per share, representing a year-over-year earnings growth rate of 54.04%.
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.
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 must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, LNVGY 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).