TowneBank Dividend Yield Surpasses 3%, Attracting Investor Attention

Exploring the Importance of Dividends in Stock Market Returns

Looking at the stock universe we cover at Dividend Channel, shares of TowneBank (Symbol: TOWN) achieved a yield exceeding 3% this Thursday, based on its quarterly dividend annualized to $1. On that day, the stock traded as low as $33.09. Dividends are crucial for investors, as they have historically contributed significantly to the overall returns from the stock market.

To illustrate this point, consider an investment in the iShares Russell 3000 ETF (IWV) on May 31, 2000. At the time, shares were priced at $78.27 each. Fast forward to May 31, 2012, and the value dropped slightly to $77.79, a decrease of just $0.48, or 0.6%, over twelve years. However, investors received a substantial $10.77 per share in dividends, boosting total returns to 13.15%. Despite reinvesting dividends resulting in an average annual return of only about 1.0%, a yield above 3% from TowneBank appears much more attractive if it remains sustainable. Notably, TowneBank (Symbol: TOWN) is part of the Russell 3000, which highlights its standing among the largest 3,000 companies on U.S. stock markets.

Dividend payments are often uncertain and fluctuate based on each company’s profitability. By reviewing TowneBank’s dividend history chart below, investors can assess the likelihood of the current dividend continuing, helping them gauge the sustainability of the 3% yield.

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Also see:

• BCIL Videos
• DENN shares outstanding history
• Institutional Holders of OSEA

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.