Yahoo Finance Southern Missouri Bancorp (NASDAQ:SMBC) Is Increasing Its Dividend To $0.21
Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) has announced that it will be increasing its dividend from last year's comparable payment on the 31st of August to $0.21. Despite this raise, the dividend yield of 1.6% is only a modest boost to shareholder returns.
View our latest analysis for Southern Missouri Bancorp
Southern Missouri Bancorp's Payment Expected To Have Solid Earnings Coverage
Even a low dividend yield can be attractive if it is sustained for years on end.
Southern Missouri Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 14% also shows that Southern Missouri Bancorp is able to comfortably pay dividends.
The next 3 years are set to see EPS grow by 20.3%. Analysts forecast the future payout ratio could be 14% over the same time horizon, which is a number we think the company can maintain.
Southern Missouri 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 $0.24 in 2012, and the most recent fiscal year payment was $0.84. This means that it has been growing its distributions at 13% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Southern Missouri Bancorp has grown earnings per share at 20% per year over the past five years. Southern Missouri Bancorp definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
Southern Missouri Bancorp Looks Like A Great Dividend Stock
In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. 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. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Taking the debate a bit further, we've identified 1 warning sign for Southern Missouri Bancorp that investors need to be conscious of moving forward. 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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