BankUnited, Inc. (BKU) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - BankUnited, Inc. (BKU) is based in Miami Lakes and operates in the Finance sector, with a year-to-date share price change of 7.55% [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 3.33%, which is higher than the Banks - Major Regional industry's yield of 3.26% and the S&P 500's yield of 1.51% [3] Dividend Performance - BankUnited's annualized dividend of $1.16 has increased by 9.4% from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 6.21% [4] - The current payout ratio stands at 43%, indicating that the company distributes 43% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for BankUnited's earnings in 2024 is projected at $2.87 per share, reflecting an expected increase of 1.41% compared to the previous year [5] Investment Considerations - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - While high-yielding stocks may face challenges during periods of rising interest rates, BankUnited presents a compelling investment opportunity due to its strong dividend profile [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]