Why Enterprise Financial Services (EFSC) is a Top Dividend Stock for Your Portfolio

Company Overview - Enterprise Financial Services (EFSC) is a financial holding company headquartered in Clayton, operating in the Finance sector [3] - The stock has experienced a price decline of 8.39% since the beginning of the year [3] Dividend Information - EFSC currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.24%, which is lower than the Banks - Midwest industry's yield of 3.28% and the S&P 500's yield of 1.64% [3] - The annualized dividend of $1.16 represents a 9.4% increase from the previous year [4] - Over the past five years, EFSC has increased its dividend three times, averaging an annual increase of 11.56% [4] - The current payout ratio for EFSC is 23%, indicating that the company pays out 23% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - EFSC is projected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $4.93 per share, reflecting a 1.02% increase from 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] - Established firms with stable profits are typically viewed as the best dividend options, while high-growth companies and tech startups rarely offer dividends [7] - Despite challenges during periods of rising interest rates, EFSC is considered a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold) [7]