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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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Colony Bankcorp in Focus
Colony Bankcorp (CBAN - Free Report) is headquartered in Fitzgerald, and is in the Finance sector. The stock has seen a price change of 11.65% since the start of the year. The bank holding company is currently shelling out a dividend of $0.11 per share, with a dividend yield of 3.03%. This compares to the Banks - Southeast industry's yield of 2.47% and the S&P 500's yield of 1.56%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.45 is up 2.3% from last year. In the past five-year period, Colony Bankcorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.18%. 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. Colony Bankcorp's current payout ratio is 34%, meaning it paid out 34% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CBAN expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $1.33 per share, which represents a year-over-year growth rate of 3.10%.
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.
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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CBAN 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. 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Colony Bankcorp in Focus
Colony Bankcorp (CBAN - Free Report) is headquartered in Fitzgerald, and is in the Finance sector. The stock has seen a price change of 11.65% since the start of the year. The bank holding company is currently shelling out a dividend of $0.11 per share, with a dividend yield of 3.03%. This compares to the Banks - Southeast industry's yield of 2.47% and the S&P 500's yield of 1.56%.
Taking a look at the company's dividend growth, its current annualized dividend of $0.45 is up 2.3% from last year. In the past five-year period, Colony Bankcorp has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.18%. 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. Colony Bankcorp's current payout ratio is 34%, meaning it paid out 34% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, CBAN expects solid earnings growth. The Zacks Consensus Estimate for 2024 is $1.33 per share, which represents a year-over-year growth rate of 3.10%.
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.
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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CBAN 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).