Yahoo Finance Stock Yards Bancorp Inc's Dividend Analysis
Assessing the Sustainability and Growth of SYBT's Dividends
Stock Yards Bancorp Inc (NASDAQ:SYBT) recently announced a dividend of $0.3 per share, payable on 2024-04-01, with the ex-dividend date set for 2024-03-15. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Stock Yards Bancorp Inc's dividend performance and assess its sustainability.
What Does Stock Yards Bancorp Inc Do?
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Stock Yards Bancorp Inc operates as a bank. The bank has two reportable operating segments namely Commercial Banking and Wealth Management and trust. Its services include loan and deposit services, cash management services, securities brokerage activities, mortgage origination, and others. It generates a majority of its revenue from the Commercial Banking segment.
A Glimpse at Stock Yards Bancorp Inc's Dividend History
Stock Yards Bancorp Inc has maintained a consistent dividend payment record since 1992, distributing dividends on a quarterly basis. The company is recognized as a dividend aristocrat, having increased its dividend annually since 1992, a testament to its commitment to returning value to shareholders. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Stock Yards Bancorp Inc's Dividend Yield and Growth
As of today, Stock Yards Bancorp Inc boasts a trailing dividend yield of 2.72% and a forward dividend yield of 2.80%, indicating anticipated dividend growth over the next 12 months. Over the past three years, the company's annual dividend growth rate was 3.00%, which increased to 3.90% over a five-year period, and an impressive 8.80% over the past decade. Consequently, the 5-year yield on cost for Stock Yards Bancorp Inc stock stands at approximately 3.29%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. Stock Yards Bancorp Inc's dividend payout ratio is currently 0.32, indicating that a substantial portion of earnings is retained for future growth and stability. The company's profitability rank of 6 out of 10, combined with a consistent record of positive net income over the past decade, underscores its solid financial health and ability to maintain its dividend payments.
Growth Metrics: The Future Outlook
Stock Yards Bancorp Inc's growth rank of 6 out of 10 signals a promising future. The company's revenue per share and 3-year revenue growth rate, which outperforms approximately 70.14% of global competitors, reflects a robust revenue model. Additionally, the 3-year EPS growth rate of 12.30% per year and the 5-year EBITDA growth rate of 9.10% further demonstrate Stock Yards Bancorp Inc's capability to sustain and grow its dividends.
Next Steps
Considering Stock Yards Bancorp Inc's consistent dividend payments, growth in dividend rates, prudent payout ratio, and solid profitability and growth metrics, the company presents an attractive profile for value investors focused on dividend income. The data suggests that Stock Yards Bancorp Inc is well-positioned to continue its history of dividend reliability and growth, making it a potential candidate for investors seeking steady and growing income streams. For further research on high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
