Yahoo Finance HomeTrust Bancshares' (NASDAQ:HTBI) Dividend Will Be $0.11
The board of HomeTrust Bancshares, Inc. (NASDAQ:HTBI) has announced that it will pay a dividend of $0.11 per share on the 30th of May. This means the annual payment will be 1.7% of the current stock price, which is lower than the industry average.
View our latest analysis for HomeTrust Bancshares
HomeTrust Bancshares' Dividend Forecasted To Be Well Covered By Earnings
Even a low dividend yield can be attractive if it is sustained for years on end.
Having paid out dividends for 5 years, HomeTrust Bancshares has a good history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, HomeTrust Bancshares' latest earnings report puts its payout ratio at 14%, showing that the company can pay out its dividends comfortably.
EPS is set to fall by 4.2% over the next 3 years. Despite that, analysts estimate the future payout ratio could be 16% over the same time period, which is in a pretty comfortable range.
HomeTrust Bancshares Is Still Building Its Track Record
It is great to see that HomeTrust Bancshares has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2019, the dividend has gone from $0.24 total annually to $0.44. This implies that the company grew its distributions at a yearly rate of about 13% over that duration. HomeTrust Bancshares 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.
The Dividend Looks Likely To Grow
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. HomeTrust Bancshares has impressed us by growing EPS at 12% per 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.
HomeTrust Bancshares Looks Like A Great Dividend Stock
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. The earnings easily cover the company's distributions, and the company is generating plenty of cash. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. All of these factors considered, we think this has solid potential as a dividend stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Just as an example, we've come across 2 warning signs for HomeTrust Bancshares you should be aware of, and 1 of them makes us a bit uncomfortable. Is HomeTrust Bancshares not quite the opportunity you were looking for? Why not check out our selection of top 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.
