Why Arrow Financial (AROW) is a Great Dividend Stock Right Now

Company Overview - Arrow Financial (AROW) is headquartered in Glens Falls and operates in the Finance sector, with a year-to-date stock price change of -6.06% [3] - The company currently pays a dividend of $0.28 per share, resulting in a dividend yield of 4.15%, which is significantly higher than the Banks - Northeast industry's yield of 2.51% and the S&P 500's yield of 1.53% [3] Dividend Performance - Arrow Financial's annualized dividend of$ 1.12 has increased by 2.8% from the previous year [4] - Over the past five years, the company has raised its dividend five times, achieving an average annual increase of 4.19% [4] - The current payout ratio stands at 57%, indicating that the company distributes 57% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Arrow Financial's earnings in 2025 is projected at $2.65 per share, reflecting an expected increase of 29.27% compared to the previous year [5] Investment Considerations - Arrow Financial is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is positioned as a solid dividend play, particularly appealing to income investors, despite the general challenges high-yielding stocks face during periods of rising interest rates [7]