Yahoo Finance TrustCo Bank Corp NY (NASDAQ:TRST) Has Affirmed Its Dividend Of $0.35
TrustCo Bank Corp NY (NASDAQ:TRST) has announced that it will pay a dividend of $0.35 per share on the 3rd of October. The dividend yield is 3.9% based on this payment, which is a little bit low compared to the other companies in the industry.
Check out our latest analysis for TrustCo Bank Corp NY
TrustCo Bank Corp NY's Dividend Forecasted To Be Well Covered By Earnings
Even a low dividend yield can be attractive if it is sustained for years on end.
Having distributed dividends for at least 10 years, TrustCo Bank Corp NY has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 39%, which means that TrustCo Bank Corp NY would be able to pay its last dividend without pressure on the balance sheet.
Over the next year, EPS is forecast to fall by 1.2%. But if the dividend continues along recent trends, we estimate the future payout ratio could be 40%, which we would consider to be quite comfortable looking forward, with most of the company's earnings left over to grow the business in the future.
TrustCo Bank Corp NY Has A Solid Track Record
The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $1.31 in 2012, and the most recent fiscal year payment was $1.40. Its dividends have grown at less than 1% per annum over this time frame. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
The Dividend Has Growth Potential
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. TrustCo Bank Corp NY has impressed us by growing EPS at 8.7% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for TrustCo Bank Corp NY's prospects of growing its dividend payments in the future.
We Really Like TrustCo Bank Corp NY's Dividend
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. All of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. Taking the debate a bit further, we've identified 1 warning sign for TrustCo Bank Corp NY 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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