TrustCo Bank Corp NY's (NASDAQ:TRST) Upcoming Dividend Will Be Larger Than Last Year's
The board of TrustCo Bank Corp NY (NASDAQ:TRST) has announced that it will be paying its dividend of $0.36 on the 3rd of April, an increased payment from last year's comparable dividend. Despite this raise, the dividend yield of 3.9% is only a modest boost to shareholder returns.
Check out our latest analysis for TrustCo Bank Corp NY
TrustCo Bank Corp NY's Payment Expected To Have Solid Earnings Coverage
Even a low dividend yield can be attractive if it is sustained for years on end.
TrustCo Bank Corp NY 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 TrustCo Bank Corp NY's payout ratio of 36% is a good sign as this means that earnings decently cover dividends.
EPS is set to fall by 23.9% over the next 3 years. Despite that, analysts estimate the future payout ratio could be 44% over the same time period, which is in a pretty comfortable range.
TrustCo Bank Corp NY Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2013, the dividend has gone from $1.31 total annually to $1.44. Its dividends have grown at less than 1% per annum over this time frame. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.
The Dividend Looks Likely To Grow
Investors could be attracted to the stock based on the quality of its payment history. TrustCo Bank Corp NY has seen EPS rising for the last five years, at 12% per annum. TrustCo Bank Corp NY definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.
TrustCo Bank Corp NY Looks Like A Great Dividend Stock
Overall, a dividend increase is always good, and we think that TrustCo Bank Corp NY is a strong income stock thanks to its track record and growing earnings. The company is generating plenty of cash, and the earnings also quite easily cover the distributions. 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. All of these factors considered, we think this has solid potential as a dividend stock.
Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for TrustCo Bank Corp NY that investors should take into consideration. 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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