Nasdaq
華爾街日報Investar Holding's (NASDAQ:ISTR) Dividend Will Be $0.11
Investar Holding Corporation (NASDAQ:ISTR) has announced that it will pay a dividend of $0.11 per share on the 30th of January. Including this payment, the dividend yield on the stock will be 1.6%, which is a modest boost for shareholders' returns.
Investar Holding's Payment Expected To Have Solid Earnings Coverage
While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.
Having distributed dividends for at least 10 years, Investar Holding has a long history of paying out a part of its earnings to shareholders. Using data from its latest earnings report, Investar Holding's payout ratio sits at 19%, an extremely comfortable number that shows that it can pay its dividend.
The next 3 years are set to see EPS grow by 69.3%. Analysts forecast the future payout ratio could be 14% over the same time horizon, which is a number we think the company can maintain.
View our latest analysis for Investar Holding
Investar Holding 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 annual payment during the last 10 years was $0.0312 in 2015, and the most recent fiscal year payment was $0.44. This means that it has been growing its distributions at 30% per annum over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Investar Holding has been growing its earnings per share at 14% a year over the past five years. Investar Holding definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
Investar Holding Looks Like A Great Dividend Stock
In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. See if management have their own wealth at stake, by checking insider shareholdings in Investar Holding stock. 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.