This is Why Heritage Financial (HFWA) is a Great Dividend Stock

Company Overview - Heritage Financial (HFWA) is based in Olympia and operates in the Finance sector, with a year-to-date share price change of -14.41% [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 4.58$0.96, reflecting a 4.3% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 4 times year-over-year, with an average annual increase of 3.94% [4] - The current payout ratio is 54%, indicating that the company pays out 54% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Heritage Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $2.03 per share, representing a year-over-year growth rate of 9.73% [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-growth firms and tech start-ups typically do not provide dividends, established companies like Heritage Financial are viewed as strong dividend options [7] - The stock is currently rated with a Zacks Rank of 3 (Hold), indicating it is a compelling investment opportunity due to its strong dividend profile [7]