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Assurant (AIZ) is a Top Dividend Stock Right Now: Should You Buy?
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Assurant in Focus
Assurant (AIZ - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of -17.84% since the start of the year. The insurer is currently shelling out a dividend of $0.63 per share, with a dividend yield of 2.34%. This compares to the Insurance - Multi line industry's yield of 3.12% and the S&P 500's yield of 2.16%.
In terms of dividend growth, the company's current annualized dividend of $2.52 is up 3.7% from last year. In the past five-year period, Assurant has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.55%. 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. Assurant's current payout ratio is 30%, meaning it paid out 30% of its trailing 12-month EPS as dividend.
AIZ is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2020 is $9.41 per share, with earnings expected to increase 10.06% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers 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, AIZ 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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Assurant (AIZ) is a Top Dividend Stock Right Now: Should You Buy?
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Assurant in Focus
Assurant (AIZ - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of -17.84% since the start of the year. The insurer is currently shelling out a dividend of $0.63 per share, with a dividend yield of 2.34%. This compares to the Insurance - Multi line industry's yield of 3.12% and the S&P 500's yield of 2.16%.
In terms of dividend growth, the company's current annualized dividend of $2.52 is up 3.7% from last year. In the past five-year period, Assurant has increased its dividend 5 times on a year-over-year basis for an average annual increase of 11.55%. 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. Assurant's current payout ratio is 30%, meaning it paid out 30% of its trailing 12-month EPS as dividend.
AIZ is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2020 is $9.41 per share, with earnings expected to increase 10.06% from the year ago period.
Bottom Line
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers 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, AIZ 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).