Yahoo Finance Hilltop Holdings Inc's Dividend Analysis
Understanding Hilltop Holdings Inc's Upcoming Dividend Payout
Hilltop Holdings Inc(NYSE:HTH) recently announced a dividend of $0.17 per share, payable on 2024-02-28, with the ex-dividend date set for 2024-02-09. 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 Hilltop Holdings Inc's dividend performance and assess its sustainability.
What Does Hilltop Holdings Inc Do?
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Hilltop Holdings Inc is a Dallas-based financial holding company. Its primary line of business is to provide business and consumer banking services from offices throughout Texas through PlainsCapital Bank. Hilltop's broker-dealer subsidiaries, Hilltop Securities Inc. and Momentum Independent Network Inc. provide a full complement of securities brokerage, institutional and investment banking services in addition to clearing services and retail financial advisory. Its business units are comprised of three reportable business segments such as banking, broker-dealer, and mortgage origination. The company generates revenue from banking activities. Hilltop operated around 410 locations in 47 states.
A Glimpse at Hilltop Holdings Inc's Dividend History
Hilltop Holdings Inc has maintained a consistent dividend payment record since 2016. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hilltop Holdings Inc's Dividend Yield and Growth
As of today, Hilltop Holdings Inc currently has a 12-month trailing dividend yield of 2.08% and a 12-month forward dividend yield of 2.19%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Hilltop Holdings Inc's annual dividend growth rate was 23.30%. Extended to a five-year horizon, this rate decreased to 19.80% per year. Based on Hilltop Holdings Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Hilltop Holdings Inc stock as of today is approximately 5.13%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Hilltop Holdings Inc's dividend payout ratio is 0.38. Hilltop Holdings Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hilltop Holdings Inc's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hilltop Holdings Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Hilltop Holdings Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hilltop Holdings Inc's revenue has increased by approximately 3.50% per year on average, a rate that underperforms approximately 68.56% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Hilltop Holdings Inc's earnings increased by approximately -11.30% per year on average, a rate that underperforms approximately 90.4% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 17.80%, which underperforms approximately 21.64% of global competitors.
Concluding Insights on Hilltop Holdings Inc's Dividend Profile
Hilltop Holdings Inc's upcoming dividend, consistent payment history, and a forward-looking yield suggest a commitment to shareholder returns. However, the sustainability of these dividends hinges on the company's growth metrics and profitability. While the payout ratio remains within a manageable range, investors should monitor Hilltop Holdings Inc's revenue and earnings trajectory to gauge future dividend prospects. With a balanced approach to growth and profitability, Hilltop Holdings Inc appears positioned to continue its dividend payments, but vigilance is advised given the mixed performance in growth metrics. Investors seeking dividend-paying stocks could find Hilltop Holdings Inc a candidate for their portfolios, though further research and monitoring would be prudent. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener to explore more opportunities.
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.
