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Its absolute yield may not be lofty-in fact it is slightly below the average yield of the S&P 500, which currently stands at 1.65%-but that record of uninterrupted dividend growth means that investors can be confident of enjoying an annual raise. This medical equipment and supply firm is very familiar to income investors, thanks to its hallowed status as a so-called dividend aristocrat: Those companies which have increased their dividends annually for at least the past 25 years.
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But Pomeroy thinks there is even more runway ahead: In fact, the company just announced the acquisition of another prominent name in the restaurant world, Ruth’s Chris Steak House. “And what we know is that our companies are very likely to pay dividends.”ĭarden enjoyed a very solid 2022, as investors shied away from more speculative stocks in favor of reliable cash machines. “In situations where the market goes nowhere, the returns investors get are basically only dividends,” says Pomeroy. Pomeroy’s sweet spot is companies that not only boast a dividend yield of at least 3% but also enjoy growth prospects that could allow them to boost their dividends even further. That’s because Pomeroy is a fan of parent company Darden Restaurants, which oversees not just Olive Garden but other chains like LongHorn Steakhouse and Capital Grille. If you are a regular customer of popular restaurant chain Olive Garden and its unlimited soup, salad and breadsticks, you are of keen interest to Neuberger Berman’s Sandy Pomeroy. Who picked it: Sandy Pomeroy, portfolio manager of Neuberger Berman Equity Income Fund (NBHIX).We narrowed down the dividend investing universe to a few of their favorite names, those companies which combine compelling growth prospects with attractive price-to-earnings ratios and healthy yields. To help navigate this tricky but rewarding market niche, we talked to five top fund managers and analysts from investment firms such as Neuberger Berman, T. Many of these companies, which are in poor financial health, end up cutting their dividends, leaving buyers high and dry. These stocks offer seemingly generous payouts relative to their share prices-but only because their share prices have recently been beaten down by frustrated investors. One of the biggest is a so-called value trap. However, not all companies offer a quarterly payout.Of course, as with any investment strategy, there are some dividend pitfalls to avoid. The Zacks Consensus Estimate for 2023 is $5.29 per share, representing a year-over-year earnings growth rate of 28.71%.įrom greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. Right now, BNP Paribas SA's payout ratio is 36%, which means it paid out 36% of its trailing 12-month EPS as dividend.Įarnings growth looks solid for BNPQY for this fiscal year. 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. BNP Paribas SA has increased its dividend 3 times on a year-over-year basis over the last 5 years for an average annual increase of 1.85%. Taking a look at the company's dividend growth, its current annualized dividend of $1.75 is up 7% from last year. In comparison, the Banks - Foreign industry's yield is 4.69%, while the S&P 500's yield is 1.73%.
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Currently paying a dividend of $1.75 per share, the company has a dividend yield of 5.8%. Based in Paris, BNP Paribas SA (BNPQY) is in the Finance sector, and so far this year, shares have seen a price change of 6.25%.
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