Associated Banc-Corp's (NYSE:ASB) Dividend Will Be Increased To $0.21
Associated Banc-Corp (NYSE:ASB) will increase its dividend from last year's comparable payment on the 15th of December to $0.21. The payment will take the dividend yield to 3.6%, which is in line with the average for the industry.
See our latest analysis for Associated Banc-Corp
Associated Banc-Corp's Earnings Will Easily Cover The Distributions
We aren't too impressed by dividend yields unless they can be sustained over time.
Associated Banc-Corp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Associated Banc-Corp's payout ratio of 37% is a good sign as this means that earnings decently cover dividends.
The next 3 years are set to see EPS grow by 22.4%. Analysts forecast the future payout ratio could be 35% over the same time horizon, which is a number we think the company can maintain.
Associated Banc-Corp Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2012, the dividend has gone from $0.20 total annually to $0.84. This works out to be a compound annual growth rate (CAGR) of approximately 15% a year over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
We Could See Associated Banc-Corp's Dividend Growing
The company's investors will be pleased to have been receiving dividend income for some time. Associated Banc-Corp has seen EPS rising for the last five years, at 7.9% per annum. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
We Really Like Associated Banc-Corp's Dividend
Overall, a dividend increase is always good, and we think that Associated Banc-Corp is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.
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. For instance, we've picked out 1 warning sign for Associated Banc-Corp that investors should take into consideration. 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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