Intesa Sanpaolo SpA (ISNPY) is a Top Dividend Stock Right Now: Should You Buy?

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 account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.Intesa Sanpaolo SpA in FocusHeadquartered in Turin, Intesa Sanpaolo SpA (ISNPY) is a Finance stock that has seen a price change of 34.53% so far this year. The company is currently shelling out a dividend of $0.84 per share, with a dividend yield of 5.16%. This compares to the Banks - Foreign industry's yield of 3.8% and the S&P 500's yield of 1.6%.Looking at dividend growth, the company's current annualized dividend of $1.68 is up 13.6% from last year. In the past five-year period, Intesa Sanpaolo SpA has increased its dividend 3 times on a year-over-year basis for an average annual increase of 40.86%. 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. Intesa Sanpaolo's current payout ratio is 49%. This means it paid out 49% of its trailing 12-month EPS as dividend.ISNPY is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $3.41 per share, with earnings expected to increase 9.29% from the year ago period.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.Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that ISNPY 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 +23.0% 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 Intesa Sanpaolo SpA (ISNPY): 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