Webster Financial Corp Offers Attractive Dividend Yield Over 3%

In recent trading, shares of Webster Financial Corp (Symbol: WBS) caught the attention of investors at Dividend Channel. On Tuesday, these shares yielded above 3% based on a quarterly dividend of $1.6 annualized. The stock reached a low of $51.43 during the day. Dividends represent a crucial aspect for investors, as they historically contribute significantly to the total returns in the stock market.

To illustrate this trend, consider the iShares Russell 3000 ETF (IWV). If an investor purchased shares on May 31, 2000, they would have paid $78.27 per share. By May 31, 2012, the share price had decreased to $77.79—a drop of $0.48 or 0.6% over twelve years. However, during that same period, the investor earned $10.77 per share in dividends, which adjusted the total return to 13.15%. Even including reinvested dividends, the average annual total return was approximately 1.0%. Thus, a yield of more than 3% from Webster Financial would be notably appealing if it can be sustained.

As a member of the Russell 3000, Webster Financial Corp ranks among the largest companies in the U.S. stock markets. This status adds credibility to its stock performance and dividend yields.

Dividend amounts often fluctuate based on each company’s profitability, making predictions challenging. For potential investors in Webster Financial, examining the historical chart for WBS may provide insights into the likelihood of maintaining its recent dividend. This analysis can help gauge expectations for a 3% annual yield.

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