Are you looking for a reliable source of income after retirement? High-yield stocks might be the answer. These stocks pay dividends that exceed the market average, providing a steady stream of income. Imagine investing $120,000 in stocks with an average 5% dividend yield and receiving $500 a month in dividends. Sounds appealing, right?
To simplify your search for high dividend stocks, we have compiled a list of stocks, REITs, and MLPs with dividend yields of 5% or more. You can access this comprehensive list by downloading it through the link provided.
Let’s take a closer look at Horizon Bancorp, Inc. (HBNC), a company with an eight-year streak of increasing dividends. While the streak may not be the longest, Horizon has shown consistent growth in dividend payouts over the years.
Business Overview
Horizon is a bank holding company that operates through Horizon Bank, offering a range of banking services and products. From checking and savings accounts to loans and insurance, Horizon caters to both commercial and retail customers. Established in 1873, Horizon serves the regions of Indiana and Michigan.
Financial Performance
Horizon recently reported its first-quarter earnings, showing significant improvements from the previous quarter. With earnings per share reaching 32 cents, up from a loss of 58 cents in the fourth quarter of 2023, Horizon demonstrated a strong recovery. The bank’s credit quality remained solid, with minimal net charge-offs and nonperforming assets.
Growth Prospects
While Horizon’s earnings growth has been inconsistent in the past, the bank is poised for an 8% growth from the current year’s base. Loan growth, particularly in commercial and high-yield consumer loans, is expected to be a key driver of this growth. However, the bank’s reliance on loan growth exposes it to economic downturns.
Competitive Advantages & Dividend Analysis
Horizon, like many banks, lacks significant competitive advantages and is vulnerable to recessionary periods. Despite these challenges, the company has managed to increase its dividend consistently. The current dividend payout ratio is at a safe level, allowing for potential small increases in the future. The attractive 5.2% yield makes Horizon an appealing choice for income-seeking investors.
Final Thoughts
In conclusion, Horizon presents a viable option for investors seeking steady income with a relatively safe dividend. While competitive disadvantages and recession risks persist, the bank’s strong dividend growth and payout safety make it a compelling investment. Monitoring factors such as net interest margin will be crucial in assessing Horizon’s future performance.
Looking for more high-quality dividend growth stocks or other income securities? Explore the resources provided by Sure Dividend for valuable insights and investment opportunities. For feedback or inquiries, feel free to reach out to support@suredividend.com.
Remember, investing wisely is key to securing your financial future.
