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On the 18 April 2019, Glacier Bancorp, Inc. (NASDAQ:GBCI) will be paying shareholders an upcoming dividend amount of US$0.26 per share. However, investors must have bought the company's stock before 08 April 2019 in order to qualify for the payment. That means you have only 4 days left! Should you diversify into Glacier Bancorp and boost your portfolio income stream? Well, keep on reading because today, I'm going to look at the latest data and analyze the stock and its dividend property in further detail.
5 checks you should use to assess a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Does it pay an annual yield higher than 75% of dividend payers?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has the amount of dividend per share grown over the past?
- Is its earnings sufficient to payout dividend at the current rate?
- Will it have the ability to keep paying its dividends going forward?
How does Glacier Bancorp fare?
Glacier Bancorp has a trailing twelve-month payout ratio of 46%, which means that the dividend is covered by earnings. Going forward, analysts expect GBCI's payout to remain around the same level at 49% of its earnings. Assuming a constant share price, this equates to a dividend yield of around 3.0%. Furthermore, EPS should increase to $2.41.
If you want to dive deeper into the sustainability of a certain payout ratio, you may wish to consider the cash flow of the business. Companies with strong cash flow can sustain a higher payout ratio, while companies with weaker cash flow generally cannot.
If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you're eyeing out is reliable in its payments. In the case of GBCI it has increased its DPS from $0.52 to $1.34 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock.
In terms of its peers, Glacier Bancorp produces a yield of 3.3%, which is high for Banks stocks but still below the market's top dividend payers.
Taking into account the dividend metrics, Glacier Bancorp ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I've put together three pertinent aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for GBCI’s future growth? Take a look at our free research report of analyst consensus for GBCI’s outlook.
- Valuation: What is GBCI worth today? Even if the stock is a cash cow, it's not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether GBCI is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.