Stellar Bancorp Inc's Dividend Analysis
Assessing the Upcoming Dividend and Historical Performance of Stellar Bancorp Inc
Stellar Bancorp Inc (NYSE:STEL) recently announced a dividend of $0.13 per share, payable on 2024-03-29, with the ex-dividend date set for 2024-03-15. 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 Stellar Bancorp Inc's dividend performance and assess its sustainability.
What Does Stellar Bancorp Inc Do?
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Stellar Bancorp Inc is a U.S. based bank holding company. It mainly focuses on providing commercial banking solutions to local small and mid-sized businesses and professionals. The services provided by the company include business and personal deposits account, personal and business lending, mobile and online banking, merchant banking, and others. The company more than 50 full service banking centers.
A Glimpse at Stellar Bancorp Inc's Dividend History
Stellar Bancorp Inc has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Stellar Bancorp Inc's Dividend Yield and Growth
As of today, Stellar Bancorp Inc currently has a 12-month trailing dividend yield of 2.22% and a 12-month forward dividend yield of 2.22%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Stellar Bancorp Inc's annual dividend growth rate was 9.10%. Extended to a five-year horizon, this rate increased to 18.10% per year. Based on Stellar Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Stellar Bancorp Inc stock as of today is approximately 5.10%.
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, Stellar Bancorp Inc's dividend payout ratio is 0.19.
Stellar Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Stellar Bancorp Inc's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Stellar Bancorp Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Stellar Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Stellar Bancorp Inc's revenue has increased by approximately 6.10% per year on average, a rate that underperforms than approximately 53.17% 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, Stellar Bancorp Inc's earnings increased by approximately 20.00% per year on average, a rate that underperforms than approximately 33.72% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 6.90%, which underperforms than approximately 53.22% of global competitors.
Next Steps
In conclusion, Stellar Bancorp Inc's upcoming dividend payment, along with its history of dividend growth, reflects a commitment to shareholder returns. The company's moderate payout ratio and profitability rank indicate a balance between distributing earnings and retaining funds for growth. Although Stellar Bancorp Inc's growth metrics present a mixed picture, the company's consistent dividend payments may appeal to value investors seeking income-generating stocks. As investors consider Stellar Bancorp Inc for their portfolios, they should weigh the dividend performance against the company's overall financial health and growth prospects. Will Stellar Bancorp Inc continue to provide a stable dividend income stream in the face of evolving market conditions? Only time will tell, but for now, the signs look promising.
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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.
