Truist Financial Corp Offers Attractive Dividend Yield Above 5%
In recent trading, shares of Truist Financial Corp (Symbol: TFC) yielded over 5% based on its quarterly dividend, which has been annualized to $2.08. On Friday, the stock traded as low as $40.95. For investors, dividends play a vital role, as they have historically contributed significantly to the total return of the stock market. For instance, purchasing shares of the S&P 500 ETF (SPY) at $146.88 on December 31, 1999, would have resulted in a decline to $142.41 by December 31, 2012—yielding a decrease of $4.67 per share over that time span. However, if investors collected $25.98 per share in dividends during this period, the overall return would have been a positive 23.36%. Even with reinvested dividends, the average annual total return would only be about 1.6%. Therefore, a sustainable yield above 5% can seem quite appealing.
Truist Financial Corporation is a member of the S&P 500, which underscores its position as a large-cap company within this important market index.
Assessing Dividend Sustainability
Generally, dividend amounts can vary, often reflecting the fluctuations in a company’s profitability. To evaluate whether Truist Financial Corp can maintain its recent dividend levels, investors can examine the dividend history chart for TFC below.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
