Stock Yards Bancorp's (NASDAQ:SYBT) Dividend Will Be $0.29
Stock Yards Bancorp, Inc. (NASDAQ:SYBT) has announced that it will pay a dividend of $0.29 per share on the 3rd of April. The dividend yield is 2.0% based on this payment, which is a little bit low compared to the other companies in the industry.
Check out our latest analysis for Stock Yards Bancorp
Stock Yards 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.
Having distributed dividends for at least 10 years, Stock Yards Bancorp has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 35%, which means that Stock Yards Bancorp would be able to pay its last dividend without pressure on the balance sheet.
Looking forward, EPS is forecast to rise by 24.5% over the next 3 years. Analysts estimate the future payout ratio will be 32% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
Stock Yards Bancorp Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2013, the annual payment back then was $0.507, compared to the most recent full-year payment of $1.16. This implies that the company grew its distributions at a yearly rate of about 8.6% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Stock Yards Bancorp has been growing its earnings per share at 13% a year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.
Stock Yards Bancorp Looks Like A Great Dividend Stock
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. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. 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 Stock Yards 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.
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