Yahoo Finance Summit State Bank (NASDAQ:SSBI) Will Pay A Dividend Of $0.12
The board of Summit State Bank (NASDAQ:SSBI) has announced that it will pay a dividend on the 15th of February, with investors receiving $0.12 per share. This means the annual payment is 4.3% of the current stock price, which is above the average for the industry.
Check out our latest analysis for Summit State Bank
Summit State Bank's Earnings Will Easily Cover The Distributions
We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable.
Summit State Bank has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 24% also shows that Summit State Bank is able to comfortably pay dividends.
Over the next year, EPS could expand by 20.6% if recent trends continue. If the dividend continues on this path, the future payout ratio could be 21% by next year, which we think can be pretty sustainable going forward.
Summit State Bank Has A Solid Track Record
The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The dividend has gone from an annual total of $0.32 in 2014 to the most recent total annual payment of $0.48. This implies that the company grew its distributions at a yearly rate of about 4.1% over that duration. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.
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. Summit State Bank has seen EPS rising for the last five years, at 21% per annum. Rapid earnings growth and a low payout ratio suggest this company has been effectively reinvesting in its business. Should that continue, this company could have a bright future.
We Really Like Summit State Bank's Dividend
Overall, we like to see the dividend staying consistent, and we think Summit State Bank might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Summit State Bank that investors should know about before committing capital to this stock. Is Summit State Bank 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.
