Yahoo Finance Seacoast Banking Corporation of Florida's (NASDAQ:SBCF) Dividend Will Be $0.18
The board of Seacoast Banking Corporation of Florida (NASDAQ:SBCF) has announced that it will pay a dividend on the 28th of June, with investors receiving $0.18 per share. This means that the annual payment will be 3.1% of the current stock price, which is in line with the average for the industry.
Check out our latest analysis for Seacoast Banking Corporation of Florida
Seacoast Banking Corporation of Florida's Earnings Will Easily Cover The Distributions
We aren't too impressed by dividend yields unless they can be sustained over time.
Seacoast Banking Corporation of Florida is just starting to establish itself as being able to pay dividends to shareholders, given its short 3-year history of distributing earnings. Diving into the company's earnings report, the payout ratio is set at 52%, which is a decent ratio of dividend payout to earnings, and may sustain future dividends if the company stays at its current trend.
The next year is set to see EPS grow by 8.9%. If the dividend continues along recent trends, we estimate the future payout ratio will be 47%, which is in the range that makes us comfortable with the sustainability of the dividend.
Seacoast Banking Corporation of Florida Is Still Building Its Track Record
The company has maintained a consistent dividend for a few years now, but we would like to see a longer track record before relying on it. The dividend has gone from an annual total of $0.52 in 2021 to the most recent total annual payment of $0.72. This works out to be a compound annual growth rate (CAGR) of approximately 11% a year over that time. Seacoast Banking Corporation of Florida has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.
Dividend Growth May Be Hard To Achieve
Investors could be attracted to the stock based on the quality of its payment history. Unfortunately things aren't as good as they seem. Seacoast Banking Corporation of Florida hasn't seen much change in its earnings per share over the last five years.
In Summary
In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Seacoast Banking Corporation of Florida's payments, as there could be some issues with sustaining them into the future. The low payout ratio is a redeeming feature, but generally we are not too happy with the payments Seacoast Banking Corporation of Florida has been making. Overall, we don't think this company has the makings of a good income stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Seacoast Banking Corporation of Florida that you should be aware of before investing. 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.
