U.S. Markets open in 1 hr 33 mins
  • S&P Futures

    4,140.00
    -15.50 (-0.37%)
     
  • Dow Futures

    33,833.00
    -125.00 (-0.37%)
     
  • Nasdaq Futures

    13,861.25
    -36.00 (-0.26%)
     
  • Russell 2000 Futures

    2,214.60
    -14.70 (-0.66%)
     
  • Crude Oil

    63.55
    +0.17 (+0.27%)
     
  • Gold

    1,774.70
    +4.10 (+0.23%)
     
  • Silver

    26.01
    +0.18 (+0.69%)
     
  • EUR/USD

    1.2066
    +0.0025 (+0.2051%)
     
  • 10-Yr Bond

    1.6010
    0.0000 (0.00%)
     
  • Vix

    18.33
    +2.08 (+12.80%)
     
  • GBP/USD

    1.3972
    -0.0012 (-0.0866%)
     
  • USD/JPY

    108.4080
    +0.2580 (+0.2386%)
     
  • BTC-USD

    56,379.96
    +88.28 (+0.16%)
     
  • CMC Crypto 200

    1,273.78
    -25.17 (-1.94%)
     
  • FTSE 100

    6,920.98
    -79.10 (-1.13%)
     
  • Nikkei 225

    29,100.38
    -584.99 (-1.97%)
     

There's A Lot To Like About Glacier Bancorp's (NASDAQ:GBCI) Upcoming US$0.30 Dividend

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Glacier Bancorp, Inc. (NASDAQ:GBCI) is about to trade ex-dividend in the next 4 days. Investors can purchase shares before the 7th of December in order to be eligible for this dividend, which will be paid on the 17th of December.

Glacier Bancorp's next dividend payment will be US$0.30 per share, on the back of last year when the company paid a total of US$1.40 to shareholders. Calculating the last year's worth of payments shows that Glacier Bancorp has a trailing yield of 3.4% on the current share price of $41.32. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. As a result, readers should always check whether Glacier Bancorp has been able to grow its dividends, or if the dividend might be cut.

See our latest analysis for Glacier Bancorp

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Fortunately Glacier Bancorp's payout ratio is modest, at just 46% of profit.

When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.

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

historic-dividend
historic-dividend

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 earnings fall far enough, the company could be forced to cut its dividend. For this reason, we're glad to see Glacier Bancorp's earnings per share have risen 11% per annum over the last five years.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Since the start of our data, 10 years ago, Glacier Bancorp has lifted its dividend by approximately 10% a year on average. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it.

The Bottom Line

Is Glacier Bancorp an attractive dividend stock, or better left on the shelf? When companies are growing rapidly and retaining a majority of the profits within the business, it's usually a sign that reinvesting earnings creates more value than paying dividends to shareholders. Perhaps even more importantly - this can sometimes signal management is focused on the long term future of the business. We think this is a pretty attractive combination, and would be interested in investigating Glacier Bancorp more closely.

In light of that, while Glacier Bancorp has an appealing dividend, it's worth knowing the risks involved with this stock. For example, we've found 3 warning signs for Glacier Bancorp (1 is a bit concerning!) that deserve your attention before investing in the shares.

If you're in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.