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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.
COPT Defense in Focus
Headquartered in Columbia, COPT Defense (CDP - Free Report) is a Finance stock that has seen a price change of 19.31% so far this year. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 3.86%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.18%, while the S&P 500's yield is 1.52%.
In terms of dividend growth, the company's current annualized dividend of $1.18 is up 3.5% from last year. In the past five-year period, COPT Defense has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.28%. 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%, meaning it paid out 48% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CDP for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.56 per share, which represents a year-over-year growth rate of 5.79%.
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.
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. 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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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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
COPT Defense in Focus
Headquartered in Columbia, COPT Defense (CDP - Free Report) is a Finance stock that has seen a price change of 19.31% so far this year. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 3.86%. In comparison, the REIT and Equity Trust - Other industry's yield is 4.18%, while the S&P 500's yield is 1.52%.
In terms of dividend growth, the company's current annualized dividend of $1.18 is up 3.5% from last year. In the past five-year period, COPT Defense has increased its dividend 2 times on a year-over-year basis for an average annual increase of 1.28%. 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%, meaning it paid out 48% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for CDP for this fiscal year. The Zacks Consensus Estimate for 2024 is $2.56 per share, which represents a year-over-year growth rate of 5.79%.
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.
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. 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).