Prosperity Bancshares (PB) Could Be a Great Choice

Core Viewpoint - Prosperity Bancshares is positioned as a compelling investment opportunity due to its solid earnings growth and attractive dividend yield, despite a recent decline in stock price [2][8]. Earnings Growth - The Zacks Consensus Estimate for Prosperity Bancshares for 2024 is $5 per share, indicating a year-over-year earnings growth rate of 0.60% [2]. Dividend Information - The current annualized dividend is $2.24, reflecting a 1.4% increase from the previous year. Over the past five years, the company has raised its dividend five times, averaging an annual increase of 6.44% [4]. - The payout ratio stands at 47%, meaning the company distributes 47% of its trailing 12-month earnings per share as dividends [4]. - The current dividend yield is 3.9%, significantly higher than the Banks - Southwest industry's yield of 0.75% and the S&P 500's yield of 1.59% [7]. Stock Performance - Prosperity Bancshares shares have experienced a price change of -15.1% this year [7]. Investment Appeal - The company is considered a strong dividend play, appealing to income investors, especially in a market where high-yielding stocks may face challenges during rising interest rates [8].