Why CB Financial Services (CBFV) is a Great Dividend Stock Right Now

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.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 Carmichaels, CB Financial Services (CBFV) is a Finance stock that has seen a price change of 14.59% so far this year. The holding company for Pennsylvania-based Community Bank is paying out a dividend of $0.26 per share at the moment, with a dividend yield of 3.18% compared to the Banks - Northeast industry's yield of 2.63% and the S&P 500's yield of 1.49%.Looking at dividend growth, the company's current annualized dividend of $1.04 is up 4% from last year. Over the last 5 years, CB Financial Services has increased its dividend 1 times on a year-over-year basis for an average annual increase of 1.24%. 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. CB Financial Services's current payout ratio is 47%, meaning it paid out 47% of its trailing 12-month EPS as dividend.Looking at this fiscal year, CBFV expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $2.59 per share, with earnings expected to increase 27.59% from the year ago period.Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that CBFV is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #1 (Strong Buy).Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 CB Financial Services, Inc. (CBFV): 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