Yahoo Finance Landmark Bancorp (NASDAQ:LARK) Is Due To Pay A Dividend Of $0.21
Landmark Bancorp, Inc. (NASDAQ:LARK) will pay a dividend of $0.21 on the 24th of August. Based on this payment, the dividend yield will be 3.4%, which is fairly typical for the industry.
Check out our latest analysis for Landmark Bancorp
Landmark Bancorp's Payment Expected To Have Solid Earnings Coverage
While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.
Landmark Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Landmark Bancorp's last earnings report, the payout ratio is at a decent 29%, meaning that the company is able to pay out its dividend with a bit of room to spare.
Over the next year, EPS could expand by 9.2% if recent trends continue. If the dividend continues along recent trends, we estimate the future payout ratio will be 29%, which is in the range that makes us comfortable with the sustainability of the dividend.
Landmark Bancorp Has A Solid Track Record
The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $0.444 in 2012, and the most recent fiscal year payment was $0.84. This implies that the company grew its distributions at a yearly rate of about 6.6% over that duration. Companies like this can be very valuable over the long term, if the decent rate of growth can be maintained.
Landmark Bancorp Could Grow Its Dividend
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Landmark Bancorp has seen EPS rising for the last five years, at 9.2% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
We Really Like Landmark Bancorp's Dividend
Overall, we like to see the dividend staying consistent, and we think Landmark Bancorp might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income 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. Now, if you want to look closer, it would be worth checking out our free research on Landmark Bancorp management tenure, salary, and performance. 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.
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