Lincoln National Corp. Offers Attractive 6% Dividend Yield
In trading on Wednesday, shares of Lincoln National Corp. (Symbol: LNC) yielded over 6% based on its quarterly dividend, which annualizes to $1.80 per share. On this trading day, the stock price dipped as low as $29.89. For many investors, dividends are crucial to consider, as historically, they comprise a significant portion of the total returns in the stock market. To illustrate this, consider an investment in the iShares Russell 3000 ETF (IWV) made on May 31, 2000, when each share cost $78.27. By May 31, 2012, the value per share fell to $77.79, resulting in a modest decline of $0.48, or 0.6%, over twelve years. However, this investment generated an impressive $10.77 per share in dividends during that time, bringing the total return to 13.15%. Even with dividends reinvested, the average annual total return amounts to about 1.0%. Thus, a sustainable yield of over 6% appears particularly appealing by comparison.
Lincoln National Corp. (Symbol: LNC) is listed among the Russell 3000, highlighting its status as one of the largest 3,000 companies in the U.S. stock markets.
Understanding the Nature of Dividends
Dividend amounts can often be unpredictable and typically fluctuate based on a company’s profitability. For Lincoln National Corp., examining the dividend history chart below is essential for assessing whether the recent dividend is likely to be sustained and if it makes the expectation of a 6% annual yield reasonable.
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Also see:
- Top Ten Hedge Funds Holding MMU
- WAB Average Annual Return
- Institutional Holders of LDR
The views and opinions expressed herein reflect those of the author and do not necessarily represent those of Nasdaq, Inc.
