Yahoo Finance Heartland Financial USA (NASDAQ:HTLF) Is Paying Out A Dividend Of $0.30
Heartland Financial USA, Inc. (NASDAQ:HTLF) will pay a dividend of $0.30 on the 28th of May. This payment means that the dividend yield will be 2.9%, which is around the industry average.
View our latest analysis for Heartland Financial USA
Heartland Financial USA's Dividend Forecasted To Be Well Covered By Earnings
We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.
Having distributed dividends for at least 10 years, Heartland Financial USA has a long history of paying out a part of its earnings to shareholders. Based on Heartland Financial USA's last earnings report, the payout ratio is at a decent 71%, meaning that the company is able to pay out its dividend with a bit of room to spare.
Looking forward, could fall by 14.5% if the company can't turn things around from the last few years. If recent patterns in the dividend continue, we could see the future payout ratio reaching 94% in the next 12 months which is on the higher end of the range we would say is sustainable.
Dividend Volatility
The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was $0.40 in 2014, and the most recent fiscal year payment was $1.20. This implies that the company grew its distributions at a yearly rate of about 12% over that duration. Despite the rapid growth in the dividend over the past number of years, we have seen the payments go down the past as well, so that makes us cautious.
The Dividend Has Limited Growth Potential
Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Heartland Financial USA's earnings per share has shrunk at 15% a year over the past five years. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in.
In Summary
In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Heartland Financial USA's payments, as there could be some issues with sustaining them into the future. The low payout ratio is a redeeming feature, but generally we are not too happy with the payments Heartland Financial USA has been making. We would be a touch cautious of relying on this stock primarily for the dividend income.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 2 warning signs for Heartland Financial USA that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield 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.
