If you are interested in cashing in on Glacier Bancorp Inc’s (NASDAQ:GBCI) upcoming dividend of $0.21 per share, you only have 9 days left to buy the shares before its ex-dividend date, 04 December 2017, in time for dividends payable on the 14 December 2017. Is this future income stream a compelling catalyst for dividend investors to think about GBCI as an investment today? Let’s take a look at GBCI’s most recent financial data to examine its dividend characteristics in more detail. See our latest analysis for GBCI
How I analyze a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is it the top 25% annual dividend yield payer?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has dividend per share amount increased over the past?
- 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?
Glacier Bancorp has a payout ratio of 48.35%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect GBCI’s payout to remain around the same level at 44.25% of its earnings, which leads to a dividend yield of around 2.72%. In addition to this, EPS should increase to $1.94. Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. In the case of GBCI it has increased its DPS from $0.52 to $1.14 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. Relative to peers, GBCI generates a yield of 3.04%, which is high for banks stocks but still below the market’s top dividend payers.
What this means for you:
Are you a shareholder? With Glacier 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. However, depending on your current holdings, it may be worth exploring other income stocks to increase diversification, or even look at high-growth stocks to supplement your steady income stocks. I suggest continuing your research by checking out my interactive free list of dividend rockstars as well as high-growth stocks to potentially add to your holdings.
Are you a potential investor? 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. As always, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. Another aspect to consider for GBCI is how much it’s actually worth. Is GBCI still a bargain? 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.