Yahoo Finance Guaranty Bancshares (NYSE:GNTY) Is Due To Pay A Dividend Of $0.24
Guaranty Bancshares, Inc. (NYSE:GNTY) will pay a dividend of $0.24 on the 10th of July. This payment means that the dividend yield will be 3.4%, which is around the industry average.
Check out our latest analysis for Guaranty Bancshares
Guaranty Bancshares' Payment Expected To Have Solid Earnings Coverage
Solid dividend yields are great, but they only really help us if the payment is sustainable.
Having paid out dividends for 7 years, Guaranty Bancshares has a good history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio of 38%shows that Guaranty Bancshares would be able to pay its last dividend without pressure on the balance sheet.
Looking forward, earnings per share is forecast to fall by 0.8% over the next year. But assuming the dividend continues along recent trends, we believe the future payout ratio could be 39%, which we are pretty comfortable with and we think would be feasible on an earnings basis.
Guaranty Bancshares Is Still Building Its Track Record
Guaranty Bancshares' dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. Since 2017, the dividend has gone from $0.473 total annually to $0.96. This works out to be a compound annual growth rate (CAGR) of approximately 11% a year over that time. The dividend has been growing rapidly, however with such a short payment history we can't know for sure if payment can continue to grow over the long term, so caution may be warranted.
The Dividend Has Growth Potential
Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. We are encouraged to see that Guaranty Bancshares has grown earnings per share at 8.2% per year over the past five years. Guaranty Bancshares definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
Guaranty Bancshares Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Guaranty Bancshares might even raise payments in the future. The earnings easily cover the company's distributions, and the company is generating plenty of cash. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Case in point: We've spotted 2 warning signs for Guaranty Bancshares (of which 1 is significant!) you should know about. Is Guaranty Bancshares 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.
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