MaxDividends Ideas: Is This Bank Stock the Steady Income Play You’ve Been Looking For?
3.05% Dividend Yield and 10 Years of Stability
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MaxDividends Ideas: 3.05% Dividend Yield and 10 Years of Stability
This is a Bank Stock the Steady Income Play You’ve Been Looking For
What if you could invest in a company that has consistently paid dividends for over a decade, and currently offers a solid 3.05% dividend yield? You’d probably want to take a closer look, right?
Meet Cathay General Bancorp (NASDAQ: CATY)
Cathay General Bancorp operates as the holding company for Cathay Bank that offers various commercial banking products and services to individuals, professionals, and small to medium-sized businesses in the United States.
Financial Score: 87 / 99
Cathay General Bancorp has been paying dividends like clockwork for more than 10 years. Right now, they’re offering an annual dividend of $1.36 per share, broken down into quarterly payouts of $0.34 per share.
While the current dividend yield of 3.05% may not seem sky-high, it’s backed by a payout ratio of just 32.5%, which means the company is keeping plenty of its earnings to reinvest back into growth.
Steady Dividend Growth with Low Risk
Cathay General Bancorp has shown remarkable consistency in its dividend payments. Over the last decade, the company has steadily increased its dividend payments, reflecting solid financial health.
What's particularly interesting for long-term dividend investors is that Cathay’s payout ratio of 32.5% is well below the industry average.
This low payout ratio means Cathay is paying out less than a third of its earnings as dividends, leaving them with significant financial flexibility to weather economic downturns.
Take the time to analyze as much dividend history as possible. Ideally, you want to invest in companies that have been paying and raising dividends for at least 10 years or more. MaxDividends Top Stocks List consists of 150+ high quality dividend companies to save your time a bit.
Financial Performance and Strong Earnings
In 2023, Cathay General Bancorp generated over $303 million in net earnings, which is more than sufficient to cover their dividends and still leave plenty for reinvestment. This is what makes their dividends sustainable in the long run. And with a current price-to-earnings (P/E) ratio of 10.02, the stock is trading at a relatively attractive valuation, potentially offering value for income-seeking investors.
Cathay General Bancorp - Quick MaxDividends Team Overview
🟢 Statement: According to the latest reports, the company demonstrates positive financial results
🟢 Sales: The company has positive sales dynamics, they are growing
🟢 Profitability: Analysis shows that in recent years and to date, operating profit has been growing, there is good dynamics in this matter
🟢 Earnings: The dynamics of earnings per share are positive, the company shows good pace and stability in terms of profitability
🟢 Overall: The company confidently maintains its position in the market, successfully generates income and maintains decent profitability even during crisesImportant Notice
If you want to stay on top of your portfolio's health, don't forget to check in on the financials of the companies you've invested in. The better shape they’re in, the better your results will be. Keep an eye on their quarterly and annual reports to see how they're performing.
MaxDividends Top Stocks pay sustainable dividends by decades without interruption, rasing them consistently over years.
Here is a quick dive into Cathay General Bancorp financials over last years
To keep your portfolio in good shape, make sure you're regularly checking the financials of the companies you're invested in. Stronger companies deliver better results, so it’s important to track their quarterly and annual reports.
Top-tier companies usually have a Financial Score of 80+, with the best hitting 90+. If you notice that score dropping below 80, it might be time to rethink your position before things go south.👉 Learn more about Financial Score
This is just the free version of MaxDividends. In the Premium version, our members get access to a curated watchlist of 19,000 companies worldwide, all scored by our team on a regular basis.
Companies with 90+ Financial Score already there and Cathay General Bancorp is tracked too on that list. Don’t forget to check Financial Score periodically. Or switch on notifications about changes.
Interesting Fact
A Bank Born from Immigrant Roots
Here’s an interesting tidbit about Cathay General Bancorp: it was originally founded in 1962 to serve the Chinese-American community in Los Angeles.
Over the decades, it expanded far beyond its initial scope, becoming a full-service commercial bank with branches across the United States.
This history gives Cathay deep roots in both the immigrant and business communities, helping it build strong, loyal customer relationships.
Top 3 Competitors
Axos Financial
Home BancShares Inc
First Community Bancshares Inc
Every week on Mondays, our team handpick top 10 high yield dividend growing reliable undervalued stocks to invest in. All the MaxDividends Top companies you can find in the MaxDividends List.
Conclusion
Should Cathay General Bancorp Be on Your Radar?
If you’re looking for a steady, reliable dividend stock, Cathay General Bancorp might just fit the bill. With a 3.05% dividend yield, 10 years of consistent payouts, and a healthy payout ratio of 32.5%, it’s a solid choice for those who want stability with room for future growth.
Combine that with its Financial Score of 87 / 99, and Cathay is positioned as a long-term income play worth considering.
That said, always take the time to do your own due diligence before making any big investment decisions.
Premium version of MaxDividends will get you access to up-to-date Financial Score Scanner with 19,000 companies worldwide.
👉 Learn more about Financial Score
Buy Cathay General Bancorp Now?
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We put this research together as a team, and it took us about 3 days to prep everything. I’d be happy to chat if you have any ideas or questions!
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Predictability in important things is the foundation of peace of mind. Peace of mind is the basis of financial well-being. MaxDividends is all about peace of mind.
At MaxDividends, we focus on a dividend growth strategy. It’s a great fit for investors who want capital appreciation, a decent level of safety, and growing income.
As the name suggests, dividend growth investing is all about finding stocks that pay dividends and can keep growing them over time. MaxDividends is all about that plus maximizing yields to get the most from dividends and boost growing passive income on your side.
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Retire Early and Live Off Dividends. $12,000 monthly for 120 months
My name is Max, nice to meet you! I am an entrepreneur, dad to three, and a private investor in stocks. Pick up high-yield dividend growth stocks to live off dividends and retire early.
The idea of growing passive income typically dawns on us when we realize we’re no longer in our twenties. For me, this realization hit around age 35. I don’t plan to run a business my entire life—I have big plans for other areas of my life too. I enjoy writing, blogging, and sharing my experiences. Retire early before 50 is the main mission for me now.
Ten years ago, I started investing in growth stocks. By now, the capital from those investments and my past savings have allowed me to start implementing my planned strategy. In the early years, I focused primarily on growth stocks, but over the past few years and especially in recent months, I’ve shifted more towards high-yield, dividend growing stocks.
At this stage in my life, predictable growing passive income is more important than the long-term price appreciation of stocks, because I plan to live off the dividends.
🙏 To focus on what we love, we need stop worrying about daily expenses. For me, the solution was creating a growing passive income stream through dividend stocks.
As an author of the MaxDividends Strategy I follow it to pick up high-yield & dividend growth stocks to live off dividends and retire early. I share my way and methodology of achieving the dream goal to live off dividends step by step.
MaxDividends Mission
Help & support everyone on the way to build growing passive income, retire early and live off dividends.
Build and grow your own dividend machine with MaxDividends to boost passive income, retire early and live off dividends with community of like-minded
This is a free version of MaxDividends. Get Premium to unlock all the features and tools of MaxDividends!
MaxDividends Premium: What You’ll Get
+ Bonus - access to full list of MaxDividends stocks updated weekly. Boost your passive income for living off dividends.
Unlock Top-notch dividend growth investment ideas and insights, handpicked to help you crush your financial goals, retire early and live off dividends.
NEW! List of the Most Dangerous Dividend Stocks You Should Avoid to Invest In Right Now
Stay away from dividend-trap companies with the most accurate list of dangerous stocks updated weekly
Ready-to-go step by step weekly guide to achieving financial freedom.
Grab ready-made MaxDividends stock sets starting at $300, $500, or $1000 each week.
Posts & Podcasts with deep dives into the top dividend stocks we hold. Key points, current statement, perspectives and consensus.
My personal MaxDividends portfolios and short list with all the changes and updates weekly.
Comprehensive tools to help you on the way retire early and live off dividends.
Community Like-Minded Access
Stay in touch with me and other MaxDividends followers. MaxDividends community chat of like-minded who wants to live off dividends and retire early. Discuss ideas, share insights, build plans and set goals. Support, motivation, like-minded - all in!
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