Zions Bancorporation National Association (NASDAQ:ZION) Has Affirmed Its Dividend Of $0.41

Zions Bancorporation, National Association (NASDAQ:ZION) will pay a dividend of $0.41 on the 23rd of May. This makes the dividend yield 3.9%, which will augment investor returns quite nicely.

Check out our latest analysis for Zions Bancorporation National Association

Zions Bancorporation National Association's Earnings Will Easily Cover The Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much.

Zions Bancorporation National Association has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Zions Bancorporation National Association's payout ratio of 41% is a good sign as this means that earnings decently cover dividends.

Looking forward, EPS is forecast to rise by 29.9% over the next 3 years. The future payout ratio could be 36% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

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Zions Bancorporation National Association 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. Since 2014, the annual payment back then was $0.16, compared to the most recent full-year payment of $1.64. This implies that the company grew its distributions at a yearly rate of about 26% over that duration. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.

Zions Bancorporation National Association May Find It Hard To Grow The Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Let's not jump to conclusions as things might not be as good as they appear on the surface. However, Zions Bancorporation National Association's EPS was effectively flat over the past five years, which could stop the company from paying more every year.

Our Thoughts On Zions Bancorporation National Association's Dividend

Overall, a consistent dividend is a good thing, and we think that Zions Bancorporation National Association has the ability to continue this into the future. With shrinking earnings, the company may see some issues maintaining the dividend even though they look pretty sustainable for now. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Zions Bancorporation National Association that investors should take into consideration. 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.