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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
First Bancorp in Focus
First Bancorp (FBP - Free Report) is headquartered in San Juan, and is in the Finance sector. The stock has seen a price change of 4.36% since the start of the year. Currently paying a dividend of $0.34 per share, the company has a dividend yield of 3.71%. In comparison, the Banks - Southeast industry's yield is 2.19%, while the S&P 500's yield is 1.56%.
Looking at dividend growth, the company's current annualized dividend of $0.72 is up 12.5% from last year. Over the last 5 years, First Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 33.23%. 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. Right now, First Bancorp's payout ratio is 35%, which means it paid out 35% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, FBP expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.85 per share, representing a year-over-year earnings growth rate of 2.21%.
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.
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. That said, they can take comfort from the fact that FBP 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?
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
First Bancorp in Focus
First Bancorp (FBP - Free Report) is headquartered in San Juan, and is in the Finance sector. The stock has seen a price change of 4.36% since the start of the year. Currently paying a dividend of $0.34 per share, the company has a dividend yield of 3.71%. In comparison, the Banks - Southeast industry's yield is 2.19%, while the S&P 500's yield is 1.56%.
Looking at dividend growth, the company's current annualized dividend of $0.72 is up 12.5% from last year. Over the last 5 years, First Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 33.23%. 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. Right now, First Bancorp's payout ratio is 35%, which means it paid out 35% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, FBP expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.85 per share, representing a year-over-year earnings growth rate of 2.21%.
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.
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. That said, they can take comfort from the fact that FBP is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).