OFG Bancorp(US:OFG) ZACKS·2025-10-14 16:46Company Overview - OFG Bancorp (OFG) is based in San Juan and operates in the Finance sector, with a year-to-date share price change of -0.28% [3] - The company currently pays a dividend of $0.30 per share, resulting in a dividend yield of 2.84%, which is higher than the Banks - Northeast industry's yield of 2.67% and the S&P 500's yield of 1.51% [3] Dividend Performance - OFG Bancorp's annualized dividend of $1.20 has increased by 20% from the previous year [4] - Over the last five years, the company has raised its dividend five times, achieving an average annual increase of 36.70% [4] - The current payout ratio is 28%, indicating that the company pays out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, OFG expects solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $4.50 per share, reflecting a year-over-year growth rate of 6.38% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [5] - It is noted that high-yielding stocks may face challenges during periods of rising interest rates, yet OFG is considered a compelling investment opportunity due to its strong dividend profile [6] - The stock currently holds a Zacks Rank of 3 (Hold) [6]