Why CB Financial Services (CBFV) is a Top Dividend Stock for Your Portfolio

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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.CB Financial Services (CBFV) is headquartered in Carmichaels, and is in the Finance sector. The stock has seen a price change of 18.58% since the start of the 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 3.07% compared to the Banks - Northeast industry's yield of 2.55% and the S&P 500's yield of 1.52%.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.Earnings growth looks solid for CBFV for this fiscal year. The Zacks Consensus Estimate for 2025 is $2.59 per share, representing a year-over-year earnings growth rate of 27.59%.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).Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>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