Zions Bancorporation National Association (NASDAQ:ZION) Has Affirmed Its Dividend Of $0.41
The board of Zions Bancorporation, National Association (NASDAQ:ZION) has announced that it will pay a dividend on the 22nd of February, with investors receiving $0.41 per share. This makes the dividend yield 4.2%, which will augment investor returns quite nicely.
Check out our latest analysis for Zions Bancorporation National Association
Zions Bancorporation National Association's Earnings Will Easily Cover The Distributions
While it is great to have a strong dividend yield, we should also consider whether the payment is sustainable.
Having distributed dividends for at least 10 years, Zions Bancorporation National Association has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Zions Bancorporation National Association's payout ratio of 30% is a good sign as this means that earnings decently cover dividends.
Looking forward, earnings per share is forecast to fall by 0.9% over the next 3 years. However, as estimated by analysts, the future payout ratio could be 31% over the same time period, which we think the company can easily maintain.
Zions Bancorporation National Association Has A Solid Track Record
The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.16 in 2014 to the most recent total annual payment of $1.64. This implies that the company grew its distributions at a yearly rate of about 26% over that duration. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.
The Dividend Has Growth Potential
The company's investors will be pleased to have been receiving dividend income for some time. Zions Bancorporation National Association has impressed us by growing EPS at 7.4% per 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.
We Really Like Zions Bancorporation National Association's Dividend
Overall, we like to see the dividend staying consistent, and we think Zions Bancorporation National Association might even raise payments in the future. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. All of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for Zions Bancorporation National Association that investors should know about before committing capital to this stock. Is Zions Bancorporation National Association not quite the opportunity you were looking for? Why not check out our selection of top 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.
