Landmark Bancorp (NASDAQ:LARK) Will Pay A Dividend Of $0.21
The board of Landmark Bancorp, Inc. (NASDAQ:LARK) has announced that it will pay a dividend of $0.21 per share on the 29th of November. This means the annual payment is 4.8% of the current stock price, which is above the average for the industry.
See our latest analysis for Landmark Bancorp
Landmark Bancorp's Dividend Forecasted To Be Well Covered By Earnings
Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained.
Landmark Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Landmark Bancorp's payout ratio of 40% is a good sign as this means that earnings decently cover dividends.
Over the next year, EPS could expand by 0.9% if recent trends continue. If the dividend continues on this path, the future payout ratio could be 43% by next year, which we think can be pretty sustainable going forward.
Landmark Bancorp Has A Solid Track Record
The company has a sustained record of paying dividends with very little fluctuation. Since 2013, the dividend has gone from $0.467 total annually to $0.84. This implies that the company grew its distributions at a yearly rate of about 6.1% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.
Dividend Growth May Be Hard To Achieve
The company's investors will be pleased to have been receiving dividend income for some time. Unfortunately, Landmark Bancorp's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year. Growth of 0.9% may indicate that the company has limited investment opportunity so it is returning its earnings to shareholders instead. This could mean the dividend doesn't have the growth potential we look for going into the future.
Landmark Bancorp Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Landmark Bancorp might even raise payments in the future. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Landmark Bancorp that you should be aware of before investing. Is Landmark Bancorp not quite the opportunity you were looking for? Why not check out our selection of top 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.
