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Why Peoples Financial Services (PFIS) is a Top Dividend Stock for Your Portfolio

Company Overview - Peoples Financial Services (PFIS) is based in Dunmore and operates in the Finance sector, with a year-to-date share price change of -4.83% [3] - The company is the holding entity for Peoples Security Bank and Trust, currently offering a dividend of $0.62 per share, resulting in a dividend yield of 5.07%, significantly higher than the Banks - Northeast industry's yield of 2.67% and the S&P 500's yield of 1.48% [3] Dividend Performance - The current annualized dividend of $2.47 represents a 20.2% increase from the previous year [4] - Over the past five years, PFIS has increased its dividend four times, achieving an average annual increase of 11.43% [4] - The company's current payout ratio stands at 52%, indicating that it distributes 52% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $5.97 per share, reflecting a year-over-year growth rate of 58.36% [5] - The company is positioned as an attractive dividend investment, appealing to income investors due to its solid earnings growth prospects and favorable dividend yield [6] Investment Considerations - PFIS is characterized as a compelling investment opportunity, not only due to its attractive dividend but also because it holds a strong Zacks Rank of 1 (Strong Buy) [6]