Yahoo Finance Westamerica Bancorporation's (NASDAQ:WABC) Dividend Will Be $0.42
Westamerica Bancorporation (NASDAQ:WABC) will pay a dividend of $0.42 on the 17th of February. This means that the annual payment will be 3.0% of the current stock price, which is in line with the average for the industry.
Check out our latest analysis for Westamerica Bancorporation
Westamerica Bancorporation's Payment Expected To Have Solid Earnings Coverage
We aren't too impressed by dividend yields unless they can be sustained over time.
Having distributed dividends for at least 10 years, Westamerica Bancorporation has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Westamerica Bancorporation's payout ratio of 37% is a good sign as this means that earnings decently cover dividends.
The next 3 years are set to see EPS grow by 28.3%. The future payout ratio could be 31% over that time period, according to analyst estimates, which is a good look for the future of the dividend.
Westamerica Bancorporation Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2013, the annual payment back then was $1.48, compared to the most recent full-year payment of $1.68. This means that it has been growing its distributions at 1.3% per annum over that time. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Westamerica Bancorporation has been growing its earnings per share at 19% a year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.
We Really Like Westamerica Bancorporation's Dividend
Overall, we like to see the dividend staying consistent, and we think Westamerica Bancorporation might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 3 Westamerica Bancorporation analysts we track are forecasting continued growth with our free report on analyst estimates for the company. 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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