Midland States Bancorp's (NASDAQ:MSBI) Dividend Will Be Increased To $0.31
The board of Midland States Bancorp, Inc. (NASDAQ:MSBI) has announced that the dividend on 23rd of February will be increased to $0.31, which will be 3.3% higher than last year's payment of $0.30 which covered the same period. This takes the dividend yield to 4.8%, which shareholders will be pleased with.
View our latest analysis for Midland States Bancorp
Midland States Bancorp's Payment Expected To Have Solid Earnings Coverage
We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable.
Midland States Bancorp has a good history of paying out dividends, with its current track record at 8 years. Past distributions do not necessarily guarantee future ones, but Midland States Bancorp's payout ratio of 40% is a good sign for current shareholders as this means that earnings decently cover dividends.
Over the next 3 years, EPS is forecast to expand by 5.3%. Analysts forecast the future payout ratio could be 40% over the same time horizon, which is a number we think the company can maintain.
Midland States Bancorp Doesn't Have A Long Payment History
Midland States Bancorp's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The dividend has gone from an annual total of $0.72 in 2016 to the most recent total annual payment of $1.20. This means that it has been growing its distributions at 6.6% per annum over that time. Midland States Bancorp has been growing its dividend at a decent rate, and the payments have been stable. However, the payment history is very short, so there is no evidence yet that the dividend can be sustained over a full economic cycle.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Midland States Bancorp has seen EPS rising for the last five years, at 13% per annum. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future.
Midland States Bancorp Looks Like A Great Dividend Stock
Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Midland States 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.
