Southern Missouri Bancorp (NASDAQ:SMBC) Has Announced A Dividend Of $0.21
The board of Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) has announced that it will pay a dividend on the 30th of November, with investors receiving $0.21 per share. The dividend yield is 2.1% based on this payment, which is a little bit low compared to the other companies in the industry.
See our latest analysis for Southern Missouri Bancorp
Southern Missouri Bancorp's Payment Expected To Have Solid Earnings Coverage
Even a low dividend yield can be attractive if it is sustained for years on end.
Southern Missouri Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 21% also shows that Southern Missouri Bancorp is able to comfortably pay dividends.
The next year is set to see EPS grow by 8.8%. If the dividend continues along recent trends, we estimate the future payout ratio will be 23%, which is in the range that makes us comfortable with the sustainability of the dividend.
Southern Missouri Bancorp Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2013, the annual payment back then was $0.30, compared to the most recent full-year payment of $0.84. This implies that the company grew its distributions at a yearly rate of about 11% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.
Southern Missouri Bancorp Could Grow Its Dividend
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Southern Missouri Bancorp has seen EPS rising for the last five years, at 7.7% per annum. Southern Missouri Bancorp definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
An additional note is that the company has been raising capital by issuing stock equal to 23% of shares outstanding in the last 12 months. Regularly doing this can be detrimental - it's hard to grow dividends per share when new shares are regularly being created.
We Really Like Southern Missouri Bancorp's Dividend
Overall, we like to see the dividend staying consistent, and we think Southern Missouri Bancorp might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for Southern Missouri Bancorp that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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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.
