Core Insights - Income investors prioritize generating consistent cash flow from liquid investments, with dividends being a key focus for returns [2][5] Company Overview - NatWest Group (NWG), headquartered in London, has experienced a price change of 37.17% this year and currently pays a dividend of $0.25 per share, resulting in a dividend yield of 3.57% [3] - The company's dividend yield surpasses the Banks - Foreign industry's yield of 3.16% and the S&P 500's yield of 1.49% [3] Dividend Growth - NatWest Group's current annualized dividend of $0.50 reflects a 13.6% increase from the previous year [4] - Over the past five years, the company has raised its dividend five times, averaging an annual increase of 47.67% [4] - The current payout ratio is 50%, indicating that the company distributes half of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - The Zacks Consensus Estimate for NatWest's earnings in 2025 is projected at $1.61 per share, representing a year-over-year growth rate of 21.05% [5] Investment Considerations - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses rarely offer dividends [6] - Despite challenges for high-yielding stocks during rising interest rates, NWG presents a compelling investment opportunity as a strong dividend play [6] - The stock currently holds a Zacks Rank of 3 (Hold) [6]
This is Why NatWest Group (NWG) is a Great Dividend Stock