A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. In the past 10 years Peoples Bancorp Inc (NASDAQ:PEBO) has returned an average of 3.00% per year to investors in the form of dividend payouts. Let’s dig deeper into whether Peoples Bancorp should have a place in your portfolio. Check out our latest analysis for Peoples Bancorp
5 checks you should use to assess a dividend stock
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Is its annual yield among the top 25% of dividend-paying companies?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has dividend per share amount increased 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 Peoples Bancorp fare?
Peoples Bancorp has a trailing twelve-month payout ratio of 42.44%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 39.83%, leading to a dividend yield of around 2.96%. Furthermore, EPS should increase to $2.28. 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. Although PEBO’s per share payments have increased in the past 10 years, it has not been a completely smooth ride. Investors have seen reductions in the dividend per share in the past, although, it has picked up again. In terms of its peers, Peoples Bancorp produces a yield of 2.85%, which is on the low-side for Banks stocks.
Considering the dividend attributes we analyzed above, Peoples Bancorp is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. 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. I’ve put together three relevant aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for PEBO’s future growth? Take a look at our free research report of analyst consensus for PEBO’s outlook.
- Valuation: What is PEBO 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 PEBO 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.