Why Unum (UNM) is a Great Dividend Stock Right Now

Company Overview - Unum (UNM) is based in Chattanooga and operates in the Finance sector, with shares experiencing an 18.6% price change this year [2] - The company currently pays a dividend of $0.37 per share, resulting in a dividend yield of 2.72%, which is higher than the Insurance - Accident and Health industry's yield of 2.16% and the S&P 500's yield of 1.53% [2] Earnings and Growth - For the fiscal year 2024, the Zacks Consensus Estimate for Unum's earnings is projected at $8.25 per share, indicating a year-over-year growth rate of 7.70% [3] - Unum's current annualized dividend of $1.46 has increased by 5% from the previous year, with an average annual increase of 6.37% over the last five years [5] Dividend Policy - The company's current payout ratio is 18%, meaning it distributes 18% of its trailing 12-month earnings per share as dividends [5] - Unum has increased its dividend four times on a year-over-year basis over the last five years, reflecting a commitment to returning value to shareholders [5] Investment Perspective - Unum is considered a compelling investment opportunity due to its strong dividend profile and growth potential, currently holding a Zacks Rank of 3 (Hold) [6] - The company is positioned as a more secure dividend option compared to high-growth firms or tech start-ups, which typically do not offer dividends [6]