There is a lot to be liked about Glacier Bancorp Inc (NASDAQ:GBCI) as an income stock, over the past 10 years it has returned an average of 3.00% per year. The company is currently worth US$3.22B, and now yields roughly 3.24%. Let’s dig deeper into whether Glacier Bancorp should have a place in your portfolio. See our latest analysis for Glacier Bancorp
How I analyze a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
- Is it the top 25% annual dividend yield payer?
- Has it paid dividend every year without dramatically reducing payout in the past?
- Has dividend per share risen in the past couple of years?
- Can it afford to pay the current rate of dividends from its earnings?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How well does Glacier Bancorp fit our criteria?
The current trailing twelve-month payout ratio for the stock is 55.97%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 43.50%, leading to a dividend yield of 2.65%. However, EPS should increase to $2.2, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. 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. GBCI has increased its DPS from $0.52 to $1.22 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. Compared to its peers, Glacier Bancorp produces a yield of 3.24%, which is on the low-side for Banks stocks.
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. There are 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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.