Community Trust Bancorp (CTBI) Could Be a Great Choice

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. 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 the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a 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.Community Trust Bancorp in FocusCommunity Trust Bancorp (CTBI) is headquartered in Pikeville, and is in the Finance sector. The stock has seen a price change of -2.73% since the start of the year. The bank holding company for Community Trust Bank is paying out a dividend of $0.47 per share at the moment, with a dividend yield of 3.64% compared to the Banks - Southeast industry's yield of 2.4% and the S&P 500's yield of 1.57%.Taking a look at the company's dividend growth, its current annualized dividend of $1.88 is up 1.1% from last year. Community Trust Bancorp has increased its dividend 5 times on a year-over-year basis over the last 5 years for an average annual increase of 5.47%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. Community Trust Bancorp's current payout ratio is 41%, meaning it paid out 41% of its trailing 12-month EPS as dividend.Looking at this fiscal year, CTBI expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $5.06 per share, which represents a year-over-year growth rate of 9.76%.Bottom LineInvestors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. 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. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, CTBI 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).Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.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 Community Trust Bancorp, Inc. (CTBI): 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