Company Overview - Kroger is based in Cincinnati and operates in the Retail-Wholesale sector, with a year-to-date share price change of 4.3% [3] - The company currently pays a dividend of $0.32 per share, resulting in a dividend yield of 2.01%, which is higher than the Retail - Supermarkets industry's yield of 1.82% and the S&P 500's yield of 1.59% [3] Dividend Performance - Kroger's annualized dividend of $1.28 has increased by 4.9% from the previous year [4] - Over the past five years, Kroger has raised its dividend five times, achieving an average annual increase of 16.66% [4] - The current payout ratio is 27%, indicating that Kroger pays out 27% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Kroger's earnings per share for 2025 is $4.77, reflecting a year-over-year earnings growth rate of 6.71% [5] Investment Considerations - Kroger is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Company Overview - Goldman Sachs (GS) is headquartered in New York and has experienced a price change of 1.49% this year [3] - The company currently pays a dividend of $6 per share, resulting in a dividend yield of 2.06%, which is significantly higher than the Financial - Investment Bank industry's yield of 0.85% and the S&P 500's yield of 1.57% [3] Dividend Performance - Goldman Sachs has an annualized dividend of $12, reflecting a 4.3% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 24.53% [4] - The current payout ratio is 30%, indicating that the company distributes 30% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Goldman Sachs anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $47.12 per share, representing a year-over-year growth rate of 16.23% [5] Investment Appeal - Goldman Sachs is viewed as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]

Company Overview - 1st Source (SRCE) is based in South Bend and operates in the Finance sector, with a year-to-date share price change of 11% [3] - The company currently pays a dividend of $0.36 per share, resulting in a dividend yield of 2.22%, which is lower than the Banks - Midwest industry's yield of 2.99% and the S&P 500's yield of 1.55% [3] Dividend Performance - The current annualized dividend of 1st Source is $1.44, reflecting a 2.9% increase from the previous year [4] - Over the last 5 years, 1st Source has increased its dividend 4 times year-over-year, achieving an average annual increase of 5.14% [4] - The company's payout ratio stands at 26%, indicating that it paid out 26% of its trailing 12-month EPS as dividends [4] Earnings Growth - 1st Source is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 projected at $5.82 per share, representing a year-over-year growth rate of 6.01% [5] Investment Appeal - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [7] - 1st Source is recognized as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Company Overview - LyondellBasell is an international manufacturer of chemicals with over 20% global market share in ethylene products, including plastics, polymers, and synthetic oils [1] Industry Context - The global chemicals manufacturing sector is currently experiencing a cyclical low, with China and Europe de-stocking industrial inventories throughout 2023 [1]

Core Insights - Costco's dividend has consistently increased since its introduction in 2004, with a recent special dividend of $15 per share in January 2024 [1] - The current dividend payout is $4.64 per share, supported by strong free cash flow of approximately $2.2 billion in Q1 fiscal 2025 [3] - Despite the consistent dividend growth, the yield is only 0.4%, significantly lower than the S&P 500 average of 1.25% [4] Dividend Analysis - Costco's dividend yield is low compared to competitors, with Walmart at 0.9% and Target at 3.5% [5] - In 2024, shareholders received $19.50 per share in total dividend income, but the yield remains below 1.9% when considering the current share price [4] - The company has a history of increasing dividends, having raised its payout for 21 consecutive years [10] Stock Performance - Costco's stock price increased over 40% last year, outperforming the S&P 500 [6] - The company operates 890 warehouses globally, with plans to open 29 more in fiscal 2025 and a renewal rate of 91% [7] - Fiscal 2024 net income reached $7.4 billion, a 17% increase year-over-year, with profits rising 13% in Q1 fiscal 2025 [8] Valuation Concerns - The current P/E ratio is at an all-time high of 62, raising concerns about valuation sustainability [8][12] - Analysts forecast only 13% annual profit growth for fiscal 2025, which may not justify the high earnings multiple [9] - The low dividend yield and high valuation suggest that investors may find better returns in other retail stocks [12]

Company Overview - American International Group (AIG) is headquartered in New York and operates in the Finance sector [3] - The stock has experienced a price change of 9.46% since the beginning of the year [3] Dividend Information - AIG currently pays a dividend of $0.4 per share, resulting in a dividend yield of 2.01%, which is higher than the Insurance - Multi line industry's yield of 1.6% and the S&P 500's yield of 1.54% [3] - The annualized dividend of $1.60 represents a 2.6% increase from the previous year [4] - Over the past five years, AIG has increased its dividend twice on a year-over-year basis, with an average annual increase of 4.96% [4] - The current payout ratio is 29%, indicating that AIG paid out 29% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - AIG is expecting earnings to grow this fiscal year, with the Zacks Consensus Estimate for 2025 at $6.25 per share, reflecting a 26.26% increase from the previous year [5] Investment Considerations - AIG is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is viewed as a solid dividend option, particularly in contrast to high-growth businesses or tech start-ups that typically do not offer dividends [7]