SouthState Corp's Dividend Analysis
Understanding SouthState Corp's Dividend Dynamics
SouthState Corp (NYSE:SSB) recently announced a dividend of $0.52 per share, payable on 2024-02-16, with the ex-dividend date set for 2024-02-08. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into SouthState Corps dividend performance and assess its sustainability.
What Does SouthState Corp Do?
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SouthState Corp is a United States-based bank holding company. It provides a wide range of banking services and products to its customers through a wholly-owned bank subsidiary, South State Bank. The Bank provides retail and commercial banking services, mortgage lending services, trust and investment services, and consumer finance loans through financial centers in Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia. These services include demand, time and savings deposits, lending and credit card servicing, ATM processing, and wealth management and trust services.
A Glimpse at SouthState Corp's Dividend History
SouthState Corp has maintained a consistent dividend payment record since 1996. Dividends are currently distributed on a quarterly basis. SouthState Corp has increased its dividend each year since 1996. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 28 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down SouthState Corp's Dividend Yield and Growth
As of today, SouthState Corp currently has a 12-month trailing dividend yield of 2.54% and a 12-month forward dividend yield of 2.59%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, SouthState Corp's annual dividend growth rate was 5.80%. Extended to a five-year horizon, this rate increased to 9.40% per year. And over the past decade, SouthState Corp's annual dividends per share growth rate stands at an impressive 12.30%.
Based on SouthState Corp's dividend yield and five-year growth rate, the 5-year yield on cost of SouthState Corp stock as of today is approximately 3.98%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, SouthState Corp's dividend payout ratio is 0.30.
SouthState Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks SouthState Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. SouthState Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and SouthState Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. SouthState Corp's revenue has increased by approximately 5.20% per year on average, a rate that underperforms than approximately 58.04% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, SouthState Corp's earnings increased by approximately 7.40% per year on average, a rate that underperforms than approximately 54.68% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 7.10%, which underperforms than approximately 54.52% of global competitors.
Next Steps
In conclusion, SouthState Corp's consistent dividend payments, progressive dividend growth rate, and a reasonable payout ratio reflect the company's commitment to shareholder returns. While its profitability is fair, and its growth metrics indicate a stable outlook, there remains room for improvement compared to industry peers. Investors considering SouthState Corp should weigh these factors in the context of their investment strategy and the bank's potential to navigate future market conditions. The question remains: can SouthState Corp continue to provide value to its investors through sustainable dividend growth?
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
