Timberland Bancorp (NASDAQ:TSBK) Is Increasing Its Dividend To $0.24
Timberland Bancorp, Inc.'s (NASDAQ:TSBK) dividend will be increasing from last year's payment of the same period to $0.24 on 23rd of February. This makes the dividend yield about the same as the industry average at 3.2%.
See our latest analysis for Timberland Bancorp
Timberland Bancorp's Dividend Forecasted To Be Well Covered By Earnings
We aren't too impressed by dividend yields unless they can be sustained over time.
Timberland Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 29%, which means that Timberland Bancorp would be able to pay its last dividend without pressure on the balance sheet.
If the trend of the last few years continues, EPS will grow by 5.3% over the next 12 months. If the dividend continues along recent trends, we estimate the future payout ratio will be 33%, which is in the range that makes us comfortable with the sustainability of the dividend.
Timberland Bancorp Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of $0.12 in 2014 to the most recent total annual payment of $0.96. This means that it has been growing its distributions at 23% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.
Timberland Bancorp Could Grow Its Dividend
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Timberland Bancorp has impressed us by growing EPS at 5.3% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Timberland Bancorp's prospects of growing its dividend payments in the future.
We Really Like Timberland Bancorp's Dividend
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. See if management have their own wealth at stake, by checking insider shareholdings in Timberland Bancorp 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.
