Fulton Financial (FULT) 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. However, 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 make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.Fulton Financial in FocusHeadquartered in Lancaster, Fulton Financial (FULT) is a Finance stock that has seen a price change of 7.05% so far this year. The financial holding company is currently shelling out a dividend of $0.18 per share, with a dividend yield of 3.49%. This compares to the Banks - Northeast industry's yield of 2.51% and the S&P 500's yield of 1.54%.In terms of dividend growth, the company's current annualized dividend of $0.72 is up 4.3% from last year. In the past five-year period, Fulton Financial has increased its dividend 4 times on a year-over-year basis for an average annual increase of 7.12%. 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. Fulton Financial's current payout ratio is 39%. This means it paid out 39% of its trailing 12-month EPS as dividend.Earnings growth looks solid for FULT for this fiscal year. The Zacks Consensus Estimate for 2025 is $1.91 per share, representing a year-over-year earnings growth rate of 3.24%.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.For instance, it's a rare occurrence when a tech start-up or big growth business offers their shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. 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 FULT is not only an attractive dividend play, but is also a compelling investment opportunity with a Zacks Rank of #1 (Strong 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 Fulton Financial Corporation (FULT): 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