Camden National (NASDAQ:CAC) Is Paying Out A Dividend Of $0.42
The board of Camden National Corporation (NASDAQ:CAC) has announced that it will pay a dividend of $0.42 per share on the 30th of January. The dividend yield will be 3.9% based on this payment which is still above the industry average.
Camden National's Payment Expected To Have Solid Earnings Coverage
A big dividend yield for a few years doesn't mean much if it can't be sustained.
Camden National has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but Camden National's payout ratio of 48% is a good sign as this means that earnings decently cover dividends.
The next 3 years are set to see EPS grow by 92.6%. Analysts estimate the future payout ratio will be 30% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
Check out our latest analysis for Camden National
Camden National Has A Solid Track Record
Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2016, the annual payment back then was $0.80, compared to the most recent full-year payment of $1.68. This works out to be a compound annual growth rate (CAGR) of approximately 7.7% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.
Camden National May Find It Hard To Grow The Dividend
The company's investors will be pleased to have been receiving dividend income for some time. Let's not jump to conclusions as things might not be as good as they appear on the surface. However, Camden National's EPS was effectively flat over the past five years, which could stop the company from paying more every year.
Our Thoughts On Camden National's Dividend
Overall, a consistent dividend is a good thing, and we think that Camden National has the ability to continue this into the future. The earnings coverage is acceptable for now, but with earnings on the decline we would definitely keep an eye on the payout ratio. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Without at least some growth in earnings per share over time, the dividend will eventually come under pressure either from competition or inflation. See if the 4 analysts are forecasting a turnaround in our free collection of analyst estimates here. Is Camden National not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
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