First Busey (NASDAQ:BUSE) Is Due To Pay A Dividend Of $0.23
The board of First Busey Corporation (NASDAQ:BUSE) has announced that it will pay a dividend of $0.23 per share on the 28th of October. This means that the annual payment will be 3.9% of the current stock price, which is in line with the average for the industry.
See our latest analysis for First Busey
First Busey's Earnings Will Easily Cover The Distributions
We aren't too impressed by dividend yields unless they can be sustained over time.
First Busey has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Past distributions do not necessarily guarantee future ones, but First Busey's payout ratio of 45% is a good sign as this means that earnings decently cover dividends.
Looking forward, EPS is forecast to rise by 36.6% over the next 3 years. Analysts forecast the future payout ratio could be 36% over the same time horizon, which is a number we think the company can maintain.
First Busey Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.48 in 2012, and the most recent fiscal year payment was $0.92. This implies that the company grew its distributions at a yearly rate of about 6.7% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.
We Could See First Busey's Dividend Growing
Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that First Busey has been growing its earnings per share at 6.2% a year over the past five years. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.
First Busey 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.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 6 analysts we track are forecasting for First Busey for free with public analyst estimates for the company. 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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