Citigroup (C) is a Top Dividend Stock Right Now: Should You Buy?

Dividends and Income Investing - Dividends are a key component of long-term returns, often accounting for over one-third of total returns [1] - Income investors focus on generating consistent cash flow from liquid investments, with dividends being a primary source [6] - High-growth firms and tech start-ups rarely offer dividends, while established companies with secure profits are preferred for dividend income [4] Citigroup Overview - Citigroup (C) is a New York-based bank in the Finance sector, with shares up 11.19% year-to-date [2] - The company currently pays a dividend of $0.56 per share, yielding 2.86$7.28 per share [3] - The company's current annualized dividend of $2.24 is up 2.8% from last year, with a 5-year average annual increase of 1.58% [7] - Future dividend growth will depend on earnings growth and the payout ratio, which is currently 41% [7] Dividend Benefits - Dividends improve stock investing profits, decrease portfolio risk, and offer tax advantages [5] - However, not all companies provide quarterly dividends, making consistent payers like Citigroup attractive to income investors [5]