ZACKSยท2025-05-13 16:45Company Overview - Toro (TTC) is a Consumer Discretionary stock headquartered in Bloomington, with a year-to-date price change of -5.37% [3] - The company currently pays a dividend of $0.38 per share, resulting in a dividend yield of 2.01%, which is slightly below the Tools - Handheld industry's yield of 2.11% and the S&P 500's yield of 1.53% [3] Dividend Performance - Toro's annualized dividend of $1.52 has increased by 5.6% from the previous year [4] - Over the last five years, Toro has raised its dividend five times, achieving an average annual increase of 10.22% [4] - The company's current payout ratio is 36%, indicating that it distributes 36% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - Toro is expected to see earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2025 at $4.31 per share, reflecting a year-over-year growth rate of 3.36% [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-yielding stocks may face challenges during periods of rising interest rates, Toro is positioned as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]