First Commonwealth Financial (FCF) 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 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.First Commonwealth Financial in FocusFirst Commonwealth Financial (FCF) is headquartered in Indiana, and is in the Finance sector. The stock has seen a price change of -0.59% since the start of the year. The financial holding company is currently shelling out a dividend of $0.13 per share, with a dividend yield of 3.09%. This compares to the Banks - Northeast industry's yield of 2.56% and the S&P 500's yield of 1.48%.Looking at dividend growth, the company's current annualized dividend of $0.52 is up 1% 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 4.07%. 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. First Commonwealth Financial's current payout ratio is 35%. This means it paid out 35% 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 $1.43 per share, representing a year-over-year earnings growth rate of 2.14%.Bottom LineInvestors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers 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).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 +24.3% 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 First Commonwealth Financial Corporation (FCF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks