Yahoo Finance Univest Financial (NASDAQ:UVSP) Has Affirmed Its Dividend Of $0.21
Univest Financial Corporation's (NASDAQ:UVSP) investors are due to receive a payment of $0.21 per share on 24th of May. This means that the annual payment will be 4.2% of the current stock price, which is in line with the average for the industry.
Check out our latest analysis for Univest Financial
Univest Financial's Earnings Will Easily Cover The Distributions
While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.
Univest Financial has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 31%, which means that Univest Financial would be able to pay its last dividend without pressure on the balance sheet.
The next year is set to see EPS grow by 1.3%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 31% by next year, which is in a pretty sustainable range.
Univest Financial 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 2013, the annual payment back then was $0.80, compared to the most recent full-year payment of $0.84. Dividend payments have grown at less than 1% a year over this period. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.
The Dividend Has Growth Potential
The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Univest Financial has grown earnings per share at 10.0% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Univest Financial's prospects of growing its dividend payments in the future.
We Really Like Univest Financial's Dividend
Overall, we like to see the dividend staying consistent, and we think Univest Financial 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.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Taking the debate a bit further, we've identified 1 warning sign for Univest Financial that investors need to be conscious of moving forward. 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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