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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Voya Financial in Focus
Headquartered in New York, Voya Financial (VOYA - Free Report) is a Finance stock that has seen a price change of 7.37% so far this year. Currently paying a dividend of $0.45 per share, the company has a dividend yield of 2.3%. In comparison, the Insurance - Life Insurance industry's yield is 1.25%, while the S&P 500's yield is 1.51%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.80 is up 45.2% from last year. Over the last 5 years, Voya Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 23.58%. 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. Voya's current payout ratio is 20%, meaning it paid out 20% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for VOYA for this fiscal year. The Zacks Consensus Estimate for 2024 is $8.27 per share, which represents a year-over-year growth rate of 2.99%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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. With that in mind, VOYA 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?
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Voya Financial in Focus
Headquartered in New York, Voya Financial (VOYA - Free Report) is a Finance stock that has seen a price change of 7.37% so far this year. Currently paying a dividend of $0.45 per share, the company has a dividend yield of 2.3%. In comparison, the Insurance - Life Insurance industry's yield is 1.25%, while the S&P 500's yield is 1.51%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.80 is up 45.2% from last year. Over the last 5 years, Voya Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 23.58%. 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. Voya's current payout ratio is 20%, meaning it paid out 20% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for VOYA for this fiscal year. The Zacks Consensus Estimate for 2024 is $8.27 per share, which represents a year-over-year growth rate of 2.99%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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. With that in mind, VOYA 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).