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National Bank Holdings Offers Attractive 3% Yield

National Bank Holdings Corp (NBHC) is yielding above 3% based on its dividend. With historical performance illustrating the value of dividends, investors may find this yield attractive if sustainable. The report highlights potential benefits of dividend investments.

Date: 
AI Rating:   7

Dividend Potential
National Bank Holdings Corp (NBHC) offers a quarterly dividend yielding above 3%, equating to an annualized $1.16. This yield is significant, considering dividends have historically contributed to total stock market returns.

The report discusses how dividends can buffer adverse price movements in a stock. For instance, an investment in the iShares Russell 3000 ETF (IWV) from 2000 to 2012 would have resulted in a slight loss of value, yet dividend income could have delivered an overall return of 13.15%. Such perspectives may lead investors to view NBHC's dividend yield as attractive.

However, the report also stresses that dividend sustainability depends on profitability. Hence, the trajectory of NBHC's profitability could impact its ability to maintain or grow its dividend. If investors perceive that the dividend is secure, it might lead to stable or bullish stock prices.

Stocks:  NBHC