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National Bank Holdings (NBHC) Could Be a Great Choice
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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. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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.
National Bank Holdings (NBHC - Free Report) is headquartered in Greenwood Village, and is in the Finance sector. The stock has seen a price change of -10.66% since the start of the year. The holding company for NBH Bank is currently shelling out a dividend of $0.30 per share, with a dividend yield of 3.12%. This compares to the Banks - Southeast industry's yield of 2.23% and the S&P 500's yield of 1.5%.
Looking at dividend growth, the company's current annualized dividend of $1.20 is up 7.1% from last year. Over the last 5 years, National Bank Holdings has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.98%. 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. National Bank Holdings's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
NBHC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $3.30 per share, with earnings expected to increase 2.48% from the year ago period.
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 have to be mindful 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 also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
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National Bank Holdings (NBHC) Could Be a Great Choice
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
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.
National Bank Holdings (NBHC - Free Report) is headquartered in Greenwood Village, and is in the Finance sector. The stock has seen a price change of -10.66% since the start of the year. The holding company for NBH Bank is currently shelling out a dividend of $0.30 per share, with a dividend yield of 3.12%. This compares to the Banks - Southeast industry's yield of 2.23% and the S&P 500's yield of 1.5%.
Looking at dividend growth, the company's current annualized dividend of $1.20 is up 7.1% from last year. Over the last 5 years, National Bank Holdings has increased its dividend 5 times on a year-over-year basis for an average annual increase of 8.98%. 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. National Bank Holdings's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.
NBHC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $3.30 per share, with earnings expected to increase 2.48% from the year ago period.
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 have to be mindful 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 also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).