Why First Commonwealth Financial (FCF) is a Great Dividend Stock Right Now

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.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 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.First Commonwealth Financial (FCF) is headquartered in Indiana, and is in the Finance sector. The stock has seen a price change of 4.96% since the start of the year. The financial holding company is paying out a dividend of $0.14 per share at the moment, with a dividend yield of 3.04% compared to the Banks - Northeast industry's yield of 2.55% and the S&P 500's yield of 1.5%.Looking at dividend growth, the company's current annualized dividend of $0.54 is up 4.9% from last year. Over the last 5 years, First Commonwealth Financial has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.25%. 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. First Commonwealth Financial's current payout ratio is 40%, meaning it paid out 40% of its trailing 12-month EPS as dividend.Looking at this fiscal year, FCF expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $1.54 per share, representing a year-over-year earnings growth rate of 10.00%.Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious 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 FCF is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #2 (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 First Commonwealth Financial Corporation (FCF): 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