Yahoo Finance Old National Bancorp's Dividend Analysis
Exploring the Sustainability and Growth Prospects of ONB's Dividends
Old National Bancorp (NASDAQ:ONB) recently announced a dividend of $0.14 per share, payable on 2024-06-17, with the ex-dividend date set for 2024-06-05. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Old National Bancorp's dividend performance and assess its sustainability.
What Does Old National Bancorp Do?
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Old National Bancorp, with almost $10 billion in assets following its latest acquisition, is a financial services bank holding company headquartered in Evansville, Indiana. The company owns multiple financial services operations across Indiana, Illinois, and Kentucky, providing a suite of community banking services including commercial, real estate, and consumer loans; deposits; and brokerage, trust, and investment advisory services.
A Glimpse at Old National Bancorp's Dividend History
Old National Bancorp has maintained a consistent dividend payment record since 1985, distributing dividends quarterly. Since 2010, the company has increased its dividend annually, earning it the status of a dividend achievera title reserved for companies with at least 14 consecutive years of dividend increases.
Below is a chart showing the annual Dividends Per Share to track historical trends.
Breaking Down Old National Bancorp's Dividend Yield and Growth
Currently, Old National Bancorp boasts a 12-month trailing and forward dividend yield of 3.40%, indicating stable expected dividend payments over the next year. Over the past five years, the dividend growth rate has averaged 1.70% annually, and over the past decade, the annual dividends per share growth rate has been at 3.00%.
As of today, the 5-year yield on cost for Old National Bancorp stock is approximately 3.70%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio of Old National Bancorp is currently 0.29, suggesting a sustainable balance between dividend payments and retained earnings for future growth and stability. The company's profitability rank is 5 out of 10, reflecting fair profitability with consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
Old National Bancorp's growth rank of 5 suggests a fair growth outlook. Its revenue per share and 3-year revenue growth rate indicate a strong revenue model, with a 7.80% average annual increase. Furthermore, the company's 3-year EPS growth rate and 5-year EBITDA growth rate of 12.60% and 7.60% respectively, demonstrate its capability to sustain dividends in the long run.
Conclusion: A Reliable Dividend Payer with Stable Growth Prospects
Old National Bancorp has demonstrated a robust track record of dividend payments supported by a solid financial foundation and consistent growth. Its prudent payout ratio, coupled with fair profitability and growth metrics, suggests that its dividends are sustainable. Investors seeking dividend stability and growth should consider Old National Bancorp as a viable option. For further exploration of high-dividend yield stocks, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
