Yahoo Finance Amerant Bancorp (NASDAQ:AMTB) Will Pay A Dividend Of $0.09
The board of Amerant Bancorp Inc. (NASDAQ:AMTB) has announced that it will pay a dividend of $0.09 per share on the 28th of February. This means the annual payment will be 1.3% of the current stock price, which is lower than the industry average.
See our latest analysis for Amerant Bancorp
Amerant Bancorp's Earnings Will Easily Cover The Distributions
Even a low dividend yield can be attractive if it is sustained for years on end.
Currently, Amerant Bancorp does not yet have a history of paying dividends out, with this being its first year doing so. Based on Amerant Bancorp's last earnings report however, the payout ratio is at a comfortable 19%, meaning that the company may be able to sustain this dividend for future years if it continues on this earnings trend.
Over the next 3 years, EPS is forecast to expand by 74.6%. Analysts estimate the future payout ratio will be 14% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
Amerant Bancorp Is Still Building Its Track Record
It is tough to make a judgement on how stable a dividend is when the company hasn't been paying one for very long. This doesn't mean that the company can't pay a good dividend, but just that we want to wait until it can prove itself.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Amerant Bancorp has grown earnings per share at 13% per year over the past five years. Amerant Bancorp definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
We Really Like Amerant Bancorp's Dividend
Overall, we like to see the dividend staying consistent, and we think Amerant Bancorp might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 2 warning signs for Amerant Bancorp that you should be aware of before investing. 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.
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