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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 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.
Zions in Focus
Zions (ZION - Free Report) is headquartered in Salt Lake City, and is in the Finance sector. The stock has seen a price change of -13.36% since the start of the year. The financial holding company is paying out a dividend of $0.43 per share at the moment, with a dividend yield of 3.66% compared to the Banks - West industry's yield of 2.95% and the S&P 500's yield of 1.6%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.72 is up 3.6% from last year. Zions has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 5.51%. 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. Zions's current payout ratio is 35%. This means it paid out 35% of its trailing 12-month EPS as dividend.
ZION is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $5.40 per share, representing a year-over-year earnings growth rate of 9.09%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer 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. 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, ZION presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).
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Zions (ZION) 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. 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.
Zions in Focus
Zions (ZION - Free Report) is headquartered in Salt Lake City, and is in the Finance sector. The stock has seen a price change of -13.36% since the start of the year. The financial holding company is paying out a dividend of $0.43 per share at the moment, with a dividend yield of 3.66% compared to the Banks - West industry's yield of 2.95% and the S&P 500's yield of 1.6%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.72 is up 3.6% from last year. Zions has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 5.51%. 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. Zions's current payout ratio is 35%. This means it paid out 35% of its trailing 12-month EPS as dividend.
ZION is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $5.40 per share, representing a year-over-year earnings growth rate of 9.09%.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer 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. 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, ZION presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #1 (Strong Buy).