Yahoo Finance Why You Might Be Interested In TrustCo Bank Corp NY (NASDAQ:TRST) For Its Upcoming Dividend
Readers hoping to buy TrustCo Bank Corp NY (NASDAQ:TRST) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. Typically, the ex-dividend date is one business day before the record date which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. This means that investors who purchase TrustCo Bank Corp NY's shares on or after the 1st of September will not receive the dividend, which will be paid on the 3rd of October.
The company's upcoming dividend is US$0.35 a share, following on from the last 12 months, when the company distributed a total of US$1.40 per share to shareholders. Last year's total dividend payments show that TrustCo Bank Corp NY has a trailing yield of 4.1% on the current share price of $34.33. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether TrustCo Bank Corp NY can afford its dividend, and if the dividend could grow.
See our latest analysis for TrustCo Bank Corp NY
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. TrustCo Bank Corp NY paid out a comfortable 39% of its profit last year.
Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.
Click here to see how much of its profit TrustCo Bank Corp NY paid out over the last 12 months.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're encouraged by the steady growth at TrustCo Bank Corp NY, with earnings per share up 9.8% on average over the last five years.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. TrustCo Bank Corp NY has delivered 0.6% dividend growth per year on average over the past 10 years.
Final Takeaway
Is TrustCo Bank Corp NY an attractive dividend stock, or better left on the shelf? It has been growing its earnings per share somewhat in recent years, although it reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. In summary, TrustCo Bank Corp NY appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.
On that note, you'll want to research what risks TrustCo Bank Corp NY is facing. To help with this, we've discovered 1 warning sign for TrustCo Bank Corp NY that you should be aware of before investing in their shares.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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