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Why Avient (AVNT) 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 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.
Avient in Focus
Avient (AVNT - Free Report) is headquartered in Avon Lake, and is in the Basic Materials sector. The stock has seen a price change of 8.25% since the start of the year. The maker of resins used in plastic pipe and other products is paying out a dividend of $0.26 per share at the moment, with a dividend yield of 2.29% compared to the Chemical - Diversified industry's yield of 1.92% and the S&P 500's yield of 1.58%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.03 is up 3% from last year. Over the last 5 years, Avient has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.56%. 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. Avient's current payout ratio is 39%. This means it paid out 39% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AVNT for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.65 per share, representing a year-over-year earnings growth rate of 12.29%.
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. It's important to keep in mind that not all companies provide 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, AVNT 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 Avient (AVNT) 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 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.
Avient in Focus
Avient (AVNT - Free Report) is headquartered in Avon Lake, and is in the Basic Materials sector. The stock has seen a price change of 8.25% since the start of the year. The maker of resins used in plastic pipe and other products is paying out a dividend of $0.26 per share at the moment, with a dividend yield of 2.29% compared to the Chemical - Diversified industry's yield of 1.92% and the S&P 500's yield of 1.58%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.03 is up 3% from last year. Over the last 5 years, Avient has increased its dividend 5 times on a year-over-year basis for an average annual increase of 6.56%. 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. Avient's current payout ratio is 39%. This means it paid out 39% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AVNT for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.65 per share, representing a year-over-year earnings growth rate of 12.29%.
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. It's important to keep in mind that not all companies provide 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, AVNT 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).