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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.
National Bank Holdings in Focus
Based in Greenwood Village, National Bank Holdings (NBHC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 1.16%. The holding company for NBH Bank is paying out a dividend of $0.29 per share at the moment, with a dividend yield of 2.66% compared to the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.5%.
In terms of dividend growth, the company's current annualized dividend of $1.16 is up 3.6% from last year. National Bank Holdings has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 8.80%. 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, National Bank Holdings's payout ratio is 35%, which means it paid out 35% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for NBHC for this fiscal year. The Zacks Consensus Estimate for 2025 is $3.35 per share, which represents a year-over-year growth rate of 4.04%.
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. But, not every company offers 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 must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that NBHC 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?
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.
National Bank Holdings in Focus
Based in Greenwood Village, National Bank Holdings (NBHC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 1.16%. The holding company for NBH Bank is paying out a dividend of $0.29 per share at the moment, with a dividend yield of 2.66% compared to the Banks - Southeast industry's yield of 2.28% and the S&P 500's yield of 1.5%.
In terms of dividend growth, the company's current annualized dividend of $1.16 is up 3.6% from last year. National Bank Holdings has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 8.80%. 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, National Bank Holdings's payout ratio is 35%, which means it paid out 35% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for NBHC for this fiscal year. The Zacks Consensus Estimate for 2025 is $3.35 per share, which represents a year-over-year growth rate of 4.04%.
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. But, not every company offers 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 must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that NBHC is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).