Camden National (NASDAQ:CAC) Is Increasing Its Dividend To $0.42
The board of Camden National Corporation (NASDAQ:CAC) has announced that it will be increasing its dividend by 5.0% on the 31st of January to $0.42, up from last year's comparable payment of $0.40. This takes the dividend yield to 3.9%, which shareholders will be pleased with.
Check out our latest analysis for Camden National
Camden National's Payment Expected To Have Solid Earnings Coverage
While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable.
Camden National has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Camden National's last earnings report, the payout ratio is at a decent 38%, meaning that the company is able to pay out its dividend with a bit of room to spare.
The next 3 years are set to see EPS grow by 11.7%. Analysts forecast the future payout ratio could be 37% over the same time horizon, which is a number we think the company can maintain.
Camden National Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The annual payment during the last 10 years was $0.667 in 2012, and the most recent fiscal year payment was $1.60. This means that it has been growing its distributions at 9.1% per annum over that time. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.
Camden National Could Grow Its Dividend
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. We are encouraged to see that Camden National has grown earnings per share at 9.4% per year over the past five years. Camden National definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
Camden National Looks Like A Great Dividend Stock
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. 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. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 Camden National analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Camden National not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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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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