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Key reasons why dividend hunters should check out Great Southern Bancorp Inc

In uncertain economic times, dividends play a crucial role in the total return that investors get from shares like Great Southern Bancorp Inc (NSQ:GSBC).

These payouts - when they remain intact - can compensate for volatile market conditions. When share prices come under pressure, stocks with robust finances continue to offer a regular cash return to shareholders. But finding these reliable payouts is a challenge.

With so many ways of assessing dividends - and so many potential traps - it's important to focus on the most useful measures. To help you find the best dividends possible, there are a few key areas to consider. Let's take a look at Great Southern Bancorp Inc as an example of how this works.

GET MORE DATA-DRIVEN INSIGHTS INTO NSQ:GSBC »

1. High (but not excessive) dividend yield

Yield is an important dividend metric because it tells you the percentage of how much a company pays out in dividends each year relative to its share price. That makes it easy to compare dividend payouts right across the market.

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High yields are obviously appealing but be careful of excessively high yields (usually above 10%) because they can be a sign of problems. When the market suspects a company may be unable to sustain its dividend, the share price will fall and actually push the yield higher - and this can be a trap. So it pays to be wary of excessive yields.

  • Great Southern Bancorp Inc is a player in the Banking Services industry. It has a dividend yield of 4.40%.

2. Dividend growth

Another important marker for income investors is a track record of dividend growth - and evidence that the growth will continue. Consistent dividend growth can be a pointer to companies that are carefully managing their payout policies - and rewarding their shareholders over time. Rather than aggressively dishing out earnings, dividend growth companies tend to have more modest yields, but are better at sustaining their payouts.

  • Great Southern Bancorp Inc has increased its dividend payout 6 times over the past 10 years - and the dividend per share is forecast to grow by 82.5% in the coming year.

3. Dividend safety

Attractively high yields obviously turn heads - but it’s important to know that a dividend is affordable. Dividend Cover (similar to the payout ratio) is a go-to measure of a company's net income over the dividend paid to shareholders. It’s calculated as earnings per share divided by the dividend per share and helps to indicate how sustainable a dividend is.

Dividend cover of less than 1x suggests that the company can’t fund the payout from its current year earnings - and might be relying on other sources of funds to pay it.

  • Great Southern Bancorp Inc has dividend cover of 2.65.

Next steps

With these three important rules, you can track down shares that offer a reasonable yield, with a record of growth and safety. On this basis, Great Southern Bancorp Inc could be worth a closer look.

To find out more you might want to take a look at the Great Southern Bancorp Inc StockReport from the award-winning research platform, Stockopedia. StockReports contain a goldmine of information in a single page and can help to inform your investment decisions.

To find more stocks like Great Southern Bancorp Inc, you'll need to equip yourself with professional-grade data and screening tools. This kind of information has traditionally been closely guarded by professional fund managers. But our team of financial analysts have carefully constructed this screen - Stockopedia’s Dividend Stock Ideas - which gives you everything you need. So why not come and take a look?

Plus, if you’d like to discover more about dividend investing, you can read our free ebook: How to Make Money in Dividend Stocks.