Why Tokio Marine Holdings Inc. (TKOMY) 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 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.Tokio Marine Holdings Inc. In FocusBased in Tokyo, Tokio Marine Holdings Inc. (TKOMY) is in the Finance sector, and so far this year, shares have seen a price change of 11.24%. The company is currently shelling out a dividend of $0.56 per share, with a dividend yield of 2.79%. This compares to the Insurance - Property and Casualty industry's yield of 0.54% and the S&P 500's yield of 1.6%.Taking a look at the company's dividend growth, its current annualized dividend of $1.12 is up 2.3% from last year. Tokio Marine Holdings Inc. has increased its dividend 4 times on a year-over-year basis over the last 5 years for an average annual increase of 10.39%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, Tokio Marine's payout ratio is 31%, which means it paid out 31% of its trailing 12-month EPS as dividend.Looking at this fiscal year, TKOMY expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $3.84 per share, which represents a year-over-year growth rate of 6.96%.Bottom LineInvestors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, TKOMY is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold).7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 Tokio Marine Holdings Inc. (TKOMY): 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