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Are You Looking for a High-Growth Dividend Stock? Boston Properties (BXP) Could Be a Great Choice
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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.
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.
Boston Properties in Focus
Based in Boston, Boston Properties (BXP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 2.41%. Currently paying a dividend of $0.98 per share, the company has a dividend yield of 2.78%. In comparison, the REIT and Equity Trust - Other industry's yield is 4%, while the S&P 500's yield is 1.8%.
Looking at dividend growth, the company's current annualized dividend of $3.92 is up 2.3% from last year. Over the last 5 years, Boston Properties has increased its dividend 4 times on a year-over-year basis for an average annual increase of 10.91%. 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. Boston Properties's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, BXP expects solid earnings growth. The Zacks Consensus Estimate for 2020 is $7.55 per share, with earnings expected to increase 7.70% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer 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. With that in mind, BXP presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
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Are You Looking for a High-Growth Dividend Stock? Boston Properties (BXP) Could Be a Great Choice
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.
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.
Boston Properties in Focus
Based in Boston, Boston Properties (BXP - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 2.41%. Currently paying a dividend of $0.98 per share, the company has a dividend yield of 2.78%. In comparison, the REIT and Equity Trust - Other industry's yield is 4%, while the S&P 500's yield is 1.8%.
Looking at dividend growth, the company's current annualized dividend of $3.92 is up 2.3% from last year. Over the last 5 years, Boston Properties has increased its dividend 4 times on a year-over-year basis for an average annual increase of 10.91%. 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. Boston Properties's current payout ratio is 56%, meaning it paid out 56% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, BXP expects solid earnings growth. The Zacks Consensus Estimate for 2020 is $7.55 per share, with earnings expected to increase 7.70% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. However, not all companies offer 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. With that in mind, BXP presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).