Civista Bancshares (NASDAQ:CIVB) Has Affirmed Its Dividend Of $0.14
Civista Bancshares, Inc. (NASDAQ:CIVB) has announced that it will pay a dividend of $0.14 per share on the 1st of March. Based on this payment, the dividend yield will be 2.6%, which is fairly typical for the industry.
View our latest analysis for Civista Bancshares
Civista Bancshares' Payment Expected To Have Solid Earnings Coverage
Unless the payments are sustainable, the dividend yield doesn't mean too much.
Having distributed dividends for at least 10 years, Civista Bancshares has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Civista Bancshares' latest earnings report puts its payout ratio at 22%, showing that the company can pay out its dividends comfortably.
Over the next 3 years, EPS is forecast to expand by 39.9%. The future payout ratio could be 18% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
Civista Bancshares 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. Since 2013, the dividend has gone from $0.12 total annually to $0.56. This implies that the company grew its distributions at a yearly rate of about 17% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Civista Bancshares has seen EPS rising for the last five years, at 11% 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.
Civista Bancshares 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. 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.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Civista Bancshares that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield 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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