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There's A Lot To Like About Bank of Marin Bancorp's (NASDAQ:BMRC) Upcoming US$0.23 Dividend

Simply Wall St

It looks like Bank of Marin Bancorp (NASDAQ:BMRC) is about to go ex-dividend in the next 4 days. You can purchase shares before the 6th of February in order to receive the dividend, which the company will pay on the 14th of February.

Bank of Marin Bancorp's upcoming dividend is US$0.23 a share, following on from the last 12 months, when the company distributed a total of US$0.92 per share to shareholders. Based on the last year's worth of payments, Bank of Marin Bancorp has a trailing yield of 2.1% on the current stock price of $44.06. If you buy this business for its dividend, you should have an idea of whether Bank of Marin Bancorp's dividend is reliable and sustainable. As a result, readers should always check whether Bank of Marin Bancorp has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Bank of Marin Bancorp

Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Bank of Marin Bancorp paid out a comfortable 32% of its profit last year.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.

NasdaqCM:BMRC Historical Dividend Yield, February 1st 2020

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're encouraged by the steady growth at Bank of Marin Bancorp, with earnings per share up 8.4% on average over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. Bank of Marin Bancorp has delivered 13% dividend growth per year on average over the past ten years. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

To Sum It Up

Is Bank of Marin Bancorp worth buying for its dividend? Bank of Marin Bancorp has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. We think this is a pretty attractive combination, and would be interested in investigating Bank of Marin Bancorp more closely.

Ever wonder what the future holds for Bank of Marin Bancorp? See what the five analysts we track are forecasting, with this visualisation of its historical and future estimated earnings and cash flow

We wouldn't recommend just buying the first dividend stock you see, though. Here's a list of interesting dividend stocks with a greater than 2% yield and an upcoming dividend.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.