Amerant Bancorp (NASDAQ:AMTB) Is Paying Out A Dividend Of $0.09
Amerant Bancorp Inc.'s (NASDAQ:AMTB) investors are due to receive a payment of $0.09 per share on 31st of August. Including this payment, the dividend yield on the stock will be 1.8%, which is a modest boost for shareholders' returns.
View our latest analysis for Amerant Bancorp
Amerant Bancorp's Dividend Forecasted To Be Well Covered By Earnings
Even a low dividend yield can be attractive if it is sustained for years on end.
Amerant Bancorp has a short history of paying out dividends, with its current track record at only 2 years. While it has a shorter history of paying out dividends, Amerant Bancorp's payout ratio of 18% is a great sign for current shareholders, as this means that earnings greatly cover dividends.
Over the next year, EPS is forecast to expand by 13.7%. If the dividend continues along recent trends, we estimate the future payout ratio will be 16%, which is in the range that makes us comfortable with the sustainability of the dividend.
Amerant Bancorp Doesn't Have A Long Payment History
The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. Since 2021, the annual payment back then was $0.24, compared to the most recent full-year payment of $0.36. This implies that the company grew its distributions at a yearly rate of about 22% over that duration. Amerant Bancorp has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. Amerant Bancorp has seen EPS rising for the last five years, at 13% per annum. With a decent amount of growth and a low payout ratio, we think this bodes well for Amerant Bancorp's prospects of growing its dividend payments in the future.
Amerant Bancorp Looks Like A Great Dividend Stock
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 2 warning signs for Amerant Bancorp that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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