Why NatWest Group (NWG) is a Top Dividend Stock for Your Portfolio

Company Overview - NatWest Group (NWG) is headquartered in London and operates in the Finance sector, with a stock price change of 27.83% since the beginning of the year [3] - The bank currently pays a dividend of $0.39 per share, resulting in a dividend yield of 5.94%, which is significantly higher than the Banks - Foreign industry's yield of 3.73% and the S&P 500's yield of 1.6% [3] Dividend Performance - The current annualized dividend of $0.77 represents a 75% increase from the previous year, with a five-year average annual increase of 46.32% [4] - NatWest Group has increased its dividend five times on a year-over-year basis over the past five years [4] - The current payout ratio is 52%, indicating that the company pays out 52% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year, NWG anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $1.50 per share, reflecting a 12.78% increase from the previous year [5] Investment Appeal - Dividends are favored by investors for various reasons, including tax advantages and reduced overall portfolio risk, which can enhance stock investing profits [6] - Larger, established companies are more likely to offer dividends compared to tech start-ups or high-growth businesses [7] - NWG is positioned as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 1 (Strong Buy) [7]