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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.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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.
Hanmi Financial in Focus
Based in Los Angeles, Hanmi Financial (HAFC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -6.44%. Currently paying a dividend of $0.27 per share, the company has a dividend yield of 4.89%. In comparison, the Banks - West industry's yield is 3.05%, while the S&P 500's yield is 1.58%.
Looking at dividend growth, the company's current annualized dividend of $1.08 is up 8% from last year. Hanmi Financial has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 22.92%. 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. Right now, Hanmi Financial's payout ratio is 49%, which means it paid out 49% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for HAFC for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.50 per share, representing a year-over-year earnings growth rate of 21.95%.
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.
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. With that in mind, HAFC 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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Hanmi Financial (HAFC) 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.
Cash flow can come from bond interest, interest from other types of investments, and of course, 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.
Hanmi Financial in Focus
Based in Los Angeles, Hanmi Financial (HAFC - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -6.44%. Currently paying a dividend of $0.27 per share, the company has a dividend yield of 4.89%. In comparison, the Banks - West industry's yield is 3.05%, while the S&P 500's yield is 1.58%.
Looking at dividend growth, the company's current annualized dividend of $1.08 is up 8% from last year. Hanmi Financial has increased its dividend 2 times on a year-over-year basis over the last 5 years for an average annual increase of 22.92%. 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. Right now, Hanmi Financial's payout ratio is 49%, which means it paid out 49% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for HAFC for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.50 per share, representing a year-over-year earnings growth rate of 21.95%.
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.
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. With that in mind, HAFC 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).