Summit State Bank (NASDAQ:SSBI) Has Affirmed Its Dividend Of $0.12
Summit State Bank's (NASDAQ:SSBI) investors are due to receive a payment of $0.12 per share on 18th of May. Based on this payment, the dividend yield will be 3.1%, which is fairly typical for the industry.
Check out our latest analysis for Summit State Bank
Summit State Bank's Payment Expected To Have Solid Earnings Coverage
While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.
Summit State Bank has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past data isn't a guarantee for the future, Summit State Bank's latest earnings report puts its payout ratio at 19%, showing that the company can pay out its dividends comfortably.
If the trend of the last few years continues, EPS will grow by 32.5% over the next 12 months. If the dividend continues on this path, the future payout ratio could be 15% by next year, which we think can be pretty sustainable going forward.
Summit State Bank Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2013, the dividend has gone from $0.262 total annually to $0.48. This implies that the company grew its distributions at a yearly rate of about 6.2% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.
The Dividend Looks Likely To Grow
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Summit State Bank has impressed us by growing EPS at 32% per year over the past five years. Earnings per share is growing at a solid clip, and the payout ratio is low which we think is an ideal combination in a dividend stock as the company can quite easily raise the dividend in the future.
Summit State Bank Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Summit State Bank might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Summit State Bank stock. 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.
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