This is Why Allianz SE (ALIZY) is a Great Dividend Stock

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.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on 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.Headquartered in Munich, Allianz SE (ALIZY) is a Finance stock that has seen a price change of 32.42% so far this year. The company is currently shelling out a dividend of $1.18 per share, with a dividend yield of 2.91%. This compares to the Insurance - Multi line industry's yield of 1.8% and the S&P 500's yield of 1.46%.Looking at dividend growth, the company's current annualized dividend of $1.18 is up 15.1% from last year. Over the last 5 years, Allianz SE has increased its dividend 4 times on a year-over-year basis for an average annual increase of 9.02%. 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. Allianz's current payout ratio is 37%, meaning it paid out 37% of its trailing 12-month EPS as dividend.Looking at this fiscal year, ALIZY expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $3.23 per share, which represents a year-over-year growth rate of 17.45%.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, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. 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 ALIZY is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (Buy).#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>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 Allianz SE (ALIZY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks