Ameris Bancorp (NYSE:ABCB) Is Paying Out A Dividend Of $0.20
The board of Ameris Bancorp (NYSE:ABCB) has announced that it will pay a dividend on the 5th of January, with investors receiving $0.20 per share. This means the annual payment will be 1.0% of the current stock price, which is lower than the industry average.
Ameris Bancorp's Earnings Will Easily Cover The Distributions
If it is predictable over a long period, even low dividend yields can be attractive.
Ameris Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past data isn't a guarantee for the future, Ameris Bancorp's latest earnings report puts its payout ratio at 14%, showing that the company can pay out its dividends comfortably.
Looking forward, EPS is forecast to rise by 19.1% over the next 3 years. Analysts estimate the future payout ratio will be 13% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
See our latest analysis for Ameris Bancorp
Ameris Bancorp Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of $0.20 in 2015 to the most recent total annual payment of $0.80. This implies that the company grew its distributions at a yearly rate of about 15% 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.
The Dividend Looks Likely To Grow
The company's investors will be pleased to have been receiving dividend income for some time. Ameris Bancorp has seen EPS rising for the last five years, at 12% per annum. Ameris 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 Ameris Bancorp's Dividend
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.
Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for Ameris Bancorp that investors should take into consideration. Is Ameris Bancorp not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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