Only 3 Days Left Before Stock Yards Bancorp Inc (SYBT) Will Start Trading Ex-Dividend, Is It Worth Buying?
Shares of Stock Yards Bancorp Inc (NASDAQ:SYBT) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.21 per share, investors must have owned the shares prior to 08 December 2017, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. So if you want to cash in on SYBT’s dividend payment and are not yet a shareholder, you have only few days left! Today I am going to take a look at SYBT’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for SYBT
5 checks you should do on a dividend stock
When researching a dividend stock, I always follow the following screening criteria:
Is their annual yield among the top 25% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has it increased its dividend per share amount over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
How does Stock Yards Bancorp fare?
Stock Yards Bancorp has a payout ratio of 40.16%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect SYBT’s payout to remain around the same level at 40.91% of its earnings, which leads to a dividend yield of around 2.10%. Furthermore, EPS should increase to $2.01. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. SYBT has increased its DPS from $0.43 to $0.84 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, SYBT generates a yield of 2.15%, which is on the low-side for banks stocks.
What this means for you:
Are you a shareholder?
Are you a shareholder? With Stock Yards Bancorp producing strong dividend income for your portfolio over the past few years, you can take comfort in knowing that this stock will still continue to be a robust dividend generator moving forward. But, depending on your portfolio composition, it may be beneficial exploring other income stocks to increase diversification, or even look at high-growth stocks to complement your steady income stocks. I suggest continuing your research by exploring my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? Keeping in mind the dividend characteristics above, SYBT is definitely worth considering for investors looking to build a dedicated income portfolio. I also recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. No matter how much of a cash cow Stock Yards Bancorp is, it is not worth an infinite price. Can you still benefit from a mispricing of the stock? Check our latest free analysis to find out!
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.
