World food markets set for a stable year as prices firm - FAO

World food markets set for a stable year as prices firm - FAO

Anonymous

czyykj.com
Whether its through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 companys 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. AbbVie in Focus AbbVie (ABBV) is headquartered in North Chicago, and is in the Medical sector. The stock has seen a price change of -15.15% since the start of the year. The drugmaker is currently shelling out a dividend of $1.18 per share, with a dividend yield of 6.28%. This compares to the Large Cap Pharmaceuticals industrys yield of 3.09% and the S&P 500s yield of 2.5%. Looking at dividend growth, the companys current annualized dividend of $4.72 is up 10.3% from last year. AbbVie has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 20.99%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a companys annual earnings per share that it pays out as a dividend. AbbVies current payout ratio is 48%. This means it paid out 48% of its trailing 12-month EPS as dividend. Earnings growth looks solid for ABBV for this fiscal year. The Zacks Consensus Estimate for 2020 is $10.53 per share, which represents a year-over-year growth rate of 17.79%. 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, its a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. Its more common to see larger companies with more established profits give out dividends. 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, ABBV presents a compelling investment opportunity; its not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AbbVie Inc. (ABBV) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research View comments
Understanding Direct Proofs: A Comprehensive Beginner’s Guide
Discover the fundamentals of direct proofs in mathematics and how to apply them effectively to establish logical truths.

Report Page