Great Southern Bancorp Inc (GSBC): A Comprehensive Analysis on its Dividend Performance and ...
An in-depth look at Great Southern Bancorp Inc's dividend history, yield, growth rates, and future prospects
Great Southern Bancorp Inc(NASDAQ:GSBC) recently announced a dividend of $0.4 per share, payable on 2023-10-17, with the ex-dividend date set for 2023-09-29. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Great Southern Bancorp Incs dividend performance and assess its sustainability.
What Does Great Southern Bancorp Inc Do?
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Great Southern Bancorp Inc is a bank holding company. It is principally engaged in the business of originating residential and commercial real estate loans, construction loans, commercial business loans, and consumer loans. The bank provides various services such as Business Banking, Merchant Services, Debit and Credit cards, Online Banking, Mobile Banking, VIP Banking, Overdraft Protection, and other related services.
A Glimpse at Great Southern Bancorp Inc's Dividend History
Great Southern Bancorp Inc has maintained a consistent dividend payment record since 1990. Dividends are currently distributed on a quarterly basis. Great Southern Bancorp Inc has increased its dividend each year since 1993. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 30 years.
Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Great Southern Bancorp Inc's Dividend Yield and Growth
As of today, Great Southern Bancorp Inc currently has a 12-month trailing dividend yield of 3.31% and a 12-month forward dividend yield of 3.31%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Great Southern Bancorp Inc's annual dividend growth rate was 5.70%. Extended to a five-year horizon, this rate increased to 9.00% per year. And over the past decade, Great Southern Bancorp Inc's annual dividends per share growth rate stands at 8.80%.
Based on Great Southern Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Great Southern Bancorp Inc stock as of today is approximately 5.09%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Great Southern Bancorp Inc's dividend payout ratio is 0.25.
Great Southern Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Great Southern Bancorp Inc's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Great Southern Bancorp Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Great Southern Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Great Southern Bancorp Inc's revenue has increased by approximately 7.90% per year on average, a rate that outperforms than approximately 58.63% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Great Southern Bancorp Inc's earnings increased by approximately 5.40% per year on average, a rate that outperforms than approximately 40.15% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 8.20%, which outperforms than approximately 50.17% of global competitors.
Next Steps
In conclusion, Great Southern Bancorp Inc's consistent dividend payments, solid dividend growth rate, and reasonable payout ratio, coupled with its profitability and growth metrics, suggest a sustainable dividend strategy. Investors seeking a steady income stream should consider Great Southern Bancorp Inc as a potential addition to their portfolios. However, as always, it is crucial to conduct thorough research and consider the company's overall financial health before making investment decisions.
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This article first appeared on GuruFocus.
