Yahoo Finance Carlyle Group (CG) Could Be a Great Choice
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. 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 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.
Carlyle Group in Focus
Based in Washington, Carlyle Group (CG) is in the Finance sector, and so far this year, shares have seen a price change of -2.78%. The asset management firm is currently shelling out a dividend of $0.35 per share, with a dividend yield of 3.54%. This compares to the Financial - Investment Funds industry's yield of 4.04% and the S&P 500's yield of 1.61%.
Taking a look at the company's dividend growth, its current annualized dividend of $1.40 is up 1.8% from last year. Over the last 5 years, Carlyle Group has increased its dividend 2 times on a year-over-year basis for an average annual increase of 7.06%. 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. Carlyle's current payout ratio is 39%. This means it paid out 39% of its trailing 12-month EPS as dividend.
CG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2024 is $3.90 per share, with earnings expected to increase 20.37% from the year ago period.
Bottom Line
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. 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. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, CG 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).
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Carlyle Group Inc. (CG) : Free Stock Analysis Report
