Great Southern Bancorp (NASDAQ:GSBC) Has Affirmed Its Dividend Of $0.40
The board of Great Southern Bancorp, Inc. (NASDAQ:GSBC) has announced that it will pay a dividend on the 17th of January, with investors receiving $0.40 per share. This payment means that the dividend yield will be 2.6%, which is around the industry average.
View our latest analysis for Great Southern Bancorp
Great Southern Bancorp's Earnings Will Easily Cover The Distributions
We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.
Great Southern Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Great Southern Bancorp's last earnings report, the payout ratio is at a decent 25%, meaning that the company is able to pay out its dividend with a bit of room to spare.
Looking forward, earnings per share is forecast to fall by 23.3% over the next 3 years. Fortunately, analysts forecast the future payout ratio to be 31% over the same time horizon, which is in the range that makes us comfortable with the sustainability of the dividend.
Great Southern Bancorp Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2013, the dividend has gone from $0.72 total annually to $1.60. This means that it has been growing its distributions at 8.3% per annum over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.
We Could See Great Southern Bancorp's Dividend Growing
The company's investors will be pleased to have been receiving dividend income for some time. Great Southern Bancorp has impressed us by growing EPS at 8.3% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Great Southern Bancorp's prospects of growing its dividend payments in the future.
Great Southern Bancorp 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 earnings easily cover the company's distributions, and the company is generating plenty of cash. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. All in all, this checks a lot of the boxes we look for when choosing an income stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for Great Southern Bancorp that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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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.
