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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. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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.
Invitation Home in Focus
Invitation Home (INVH - Free Report) is headquartered in Dallas, and is in the Finance sector. The stock has seen a price change of -1.25% since the start of the year. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 3.67%. In comparison, the REIT and Equity Trust - Residential industry's yield is 3.77%, while the S&P 500's yield is 1.54%.
Looking at dividend growth, the company's current annualized dividend of $1.16 is up 2.7% from last year. Invitation Home has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Invitation Home's current payout ratio is 60%. This means it paid out 60% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, INVH expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.93 per share, representing a year-over-year earnings growth rate of 2.66%.
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.
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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, INVH 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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Invitation Home (INVH) Could Be a Great Choice
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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.
Invitation Home in Focus
Invitation Home (INVH - Free Report) is headquartered in Dallas, and is in the Finance sector. The stock has seen a price change of -1.25% since the start of the year. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 3.67%. In comparison, the REIT and Equity Trust - Residential industry's yield is 3.77%, while the S&P 500's yield is 1.54%.
Looking at dividend growth, the company's current annualized dividend of $1.16 is up 2.7% from last year. Invitation Home has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 18%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Invitation Home's current payout ratio is 60%. This means it paid out 60% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, INVH expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.93 per share, representing a year-over-year earnings growth rate of 2.66%.
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.
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 have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, INVH 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).