Sierra Bancorp (NASDAQ:BSRR) Is Paying Out A Dividend Of $0.23
Sierra Bancorp (NASDAQ:BSRR) will pay a dividend of $0.23 on the 12th of February. This makes the dividend yield 4.3%, which will augment investor returns quite nicely.
Check out our latest analysis for Sierra Bancorp
Sierra 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.
Sierra Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Sierra Bancorp's payout ratio of 38% is a good sign as this means that earnings decently cover dividends.
Over the next 3 years, EPS is forecast to expand by 3.5%. The future payout ratio could be 37% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
Sierra Bancorp Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.24 in 2014, and the most recent fiscal year payment was $0.92. This implies that the company grew its distributions at a yearly rate of about 14% over that duration. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.
We Could See Sierra Bancorp's Dividend Growing
Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Sierra Bancorp has grown earnings per share at 7.7% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
We Really Like Sierra Bancorp's Dividend
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Sierra Bancorp that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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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.
