ConnectOne Bancorp (CNOB) Could Be a Great Choice

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.ConnectOne Bancorp in FocusBased in Englewood Cliffs, ConnectOne Bancorp (CNOB) is in the Finance sector, and so far this year, shares have seen a price change of 10.17%. Currently paying a dividend of $0.18 per share, the company has a dividend yield of 2.85%. In comparison, the Banks - Northeast industry's yield is 2.58%, while the S&P 500's yield is 1.55%.Taking a look at the company's dividend growth, its current annualized dividend of $0.72 is up 1.4% from last year. In the past five-year period, ConnectOne Bancorp has increased its dividend 4 times on a year-over-year basis for an average annual increase of 19.41%. 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. ConnectOne's current payout ratio is 40%. This means it paid out 40% of its trailing 12-month EPS as dividend.Looking at this fiscal year, CNOB expects solid earnings growth. The Zacks Consensus Estimate for 2025 is $2.23 per share, representing a year-over-year earnings growth rate of 22.53%.Bottom LineInvestors 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CNOB presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks 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 ConnectOne Bancorp, Inc. (CNOB): 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