Norwood Financial Corp. (NWFL) is a Top Dividend Stock Right Now: Should You Buy?

Company Overview - Norwood Financial Corp. (NWFL) is located in Honesdale and operates in the Finance sector, with a year-to-date share price change of -9.5% [3] - The company currently pays a dividend of $0.31 per share, resulting in a dividend yield of 5.04%, which is significantly higher than the Banks - Northeast industry's yield of 2.67% and the S&P 500's yield of 1.45% [3] Dividend Performance - The annualized dividend of Norwood Financial is $1.24, reflecting a 3.3% increase from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 4.67% [4] - The current payout ratio stands at 57%, indicating that the company distributes 57% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - The Zacks Consensus Estimate for 2025 projects earnings of $2.71 per share, which corresponds to a year-over-year earnings growth rate of 40.41% [5] Investment Considerations - NWFL is considered a compelling investment opportunity due to its strong dividend profile and the current Zacks Rank of 3 (Hold) [6] - Income investors are attracted to dividends for various reasons, including tax advantages and reduced overall portfolio risk [5]