Stock Yards Bancorp's (NASDAQ:SYBT) Dividend Will Be $0.29




  • In Business
  • 2022-12-09 12:40:40Z
  • By Simply Wall St.
 

Stock Yards Bancorp, Inc. (NASDAQ:SYBT) will pay a dividend of $0.29 on the 30th of December. This means the annual payment will be 1.6% of the current stock price, which is lower than the industry average.

View our latest analysis for Stock Yards Bancorp

Stock Yards Bancorp's Earnings Will Easily Cover The Distributions

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

Stock Yards Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Based on Stock Yards Bancorp's last earnings report, the payout ratio is at a decent 36%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Over the next 3 years, EPS is forecast to expand by 38.1%. The future payout ratio could be 31% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Stock Yards Bancorp Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2012, the dividend has gone from $0.507 total annually to $1.16. This means that it has been growing its distributions at 8.6% per annum over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

The Dividend Has Growth Potential

Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Stock Yards Bancorp has been growing its earnings per share at 9.1% a year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

An additional note is that the company has been raising capital by issuing stock equal to 10% of shares outstanding in the last 12 months. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective.

We Really Like Stock Yards Bancorp's Dividend

Overall, we like to see the dividend staying consistent, and we think Stock Yards Bancorp might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 2 warning signs for Stock Yards Bancorp that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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

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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