Univest Financial (NASDAQ:UVSP) Will Pay A Dividend Of $0.21
Univest Financial Corporation (NASDAQ:UVSP) will pay a dividend of $0.21 on the 22nd of February. This means that the annual payment will be 3.2% of the current stock price, which is in line with the average for the industry.
Check out our latest analysis for Univest Financial
Univest Financial's Earnings Will Easily Cover The Distributions
We aren't too impressed by dividend yields unless they can be sustained over time.
Having distributed dividends for at least 10 years, Univest Financial has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Univest Financial's payout ratio of 32% is a good sign as this means that earnings decently cover dividends.
The next 3 years are set to see EPS grow by 25.5%. The future payout ratio could be 28% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
Univest Financial Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of $0.80 in 2013 to the most recent total annual payment of $0.84. Its dividends have grown at less than 1% per annum over this time frame. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Univest Financial has seen EPS rising for the last five years, at 10% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
Univest Financial Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Univest Financial might even raise payments in the future. 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. All in all, this checks a lot of the boxes we look for when choosing an income stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Univest Financial that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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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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