Why Canadian Imperial Bank (CM) is a Top Dividend Stock for Your Portfolio

Company Overview - Canadian Imperial Bank (CM) is based in Toronto and operates in the Finance sector, with a year-to-date share price change of -5.52% [3] - The current dividend paid by the company is $0.69 per share, resulting in a dividend yield of 4.59%, which is higher than the Banks - Foreign industry's yield of 3.79% and the S&P 500's yield of 1.55% [3] Dividend Performance - The annualized dividend of Canadian Imperial Bank is currently $2.74, reflecting a 3.3% increase from the previous year [4] - Over the last five years, the company has increased its dividend five times, achieving an average annual increase of 4.91% [4] - The current payout ratio is 49%, indicating that the company pays out 49% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for the company's earnings in fiscal year 2025 is projected at $5.65 per share, representing a year-over-year growth rate of 3.86% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [7] - Canadian Imperial Bank is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]