Why Southern Missouri Bancorp (SMBC) is a Top Dividend Stock for Your Portfolio

Core Insights - The primary focus for income investors is generating consistent cash flow from liquid investments, which can come from various sources including dividends [1][2] Company Overview - Southern Missouri Bancorp (SMBC) is a bank holding company in the Finance sector, with shares experiencing a price change of -16.59% this year [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 2.09%, which is lower than the Financial - Savings and Loan industry's yield of 2.84% and the S&P 500's yield of 1.52% [3] Dividend Performance - SMBC's current annualized dividend of $1.00 represents an 8.7% increase from the previous year, with an average annual increase of 8.50% over the last five years [4] - The company's current payout ratio is 18%, indicating that it paid out 18% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - For the fiscal year, SMBC anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $5.61 per share, reflecting an expected increase of 8.30% from the previous year [5] Investment Considerations - SMBC is considered a compelling investment opportunity due to its strong dividend profile, despite the challenges faced by high-yielding stocks during periods of rising interest rates [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6]