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Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

·3 min read

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) is about to trade ex-dividend in the next three days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company's books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Therefore, if you purchase Seacoast Banking Corporation of Florida's shares on or after the 14th of September, you won't be eligible to receive the dividend, when it is paid on the 30th of September.

The company's next dividend payment will be US$0.17 per share, and in the last 12 months, the company paid a total of US$0.68 per share. Last year's total dividend payments show that Seacoast Banking Corporation of Florida has a trailing yield of 2.1% on the current share price of $31.87. If you buy this business for its dividend, you should have an idea of whether Seacoast Banking Corporation of Florida's dividend is reliable and sustainable. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

See our latest analysis for Seacoast Banking Corporation of Florida

Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. Seacoast Banking Corporation of Florida paid out a comfortable 30% of its profit last year.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

historic-dividend
historic-dividend

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. Fortunately for readers, Seacoast Banking Corporation of Florida's earnings per share have been growing at 18% a year for the past five years.

Given that Seacoast Banking Corporation of Florida has only been paying a dividend for a year, there's not much of a past history to draw insight from.

Final Takeaway

Has Seacoast Banking Corporation of Florida got what it takes to maintain its dividend payments? Companies like Seacoast Banking Corporation of Florida that are growing rapidly and paying out a low fraction of earnings, are usually reinvesting heavily in their business. This strategy can add significant value to shareholders over the long term - as long as it's done without issuing too many new shares. We think this is a pretty attractive combination, and would be interested in investigating Seacoast Banking Corporation of Florida more closely.

While it's tempting to invest in Seacoast Banking Corporation of Florida for the dividends alone, you should always be mindful of the risks involved. In terms of investment risks, we've identified 3 warning signs with Seacoast Banking Corporation of Florida and understanding them should be part of your investment process.

If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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