Stock Analysis

Atlantic Union Bankshares (NASDAQ:AUB) Is Paying Out A Larger Dividend Than Last Year

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Atlantic Union Bankshares Corporation's (NASDAQ:AUB) dividend will be increasing from last year's payment of the same period to $0.30 on 26th of August. This takes the annual payment to 3.6% of the current stock price, which is about average for the industry.

View our latest analysis for Atlantic Union Bankshares

Atlantic Union Bankshares' Dividend Forecasted To Be Well Covered By Earnings

Solid dividend yields are great, but they only really help us if the payment is sustainable.

Having distributed dividends for at least 10 years, Atlantic Union Bankshares has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Atlantic Union Bankshares' payout ratio of 39% is a good sign as this means that earnings decently cover dividends.

Over the next year, EPS is forecast to expand by 14.1%. If the dividend continues along recent trends, we estimate the future payout ratio will be 37%, which is in the range that makes us comfortable with the sustainability of the dividend.

NasdaqGS:AUB Historic Dividend August 8th 2022

Atlantic Union Bankshares Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2012, the annual payment back then was $0.28, compared to the most recent full-year payment of $1.20. This works out to be a compound annual growth rate (CAGR) of approximately 16% a year over that time. 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

Investors could be attracted to the stock based on the quality of its payment history. Atlantic Union Bankshares has impressed us by growing EPS at 10% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Atlantic Union Bankshares Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. 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. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for Atlantic Union Bankshares 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.

What are the risks and opportunities for Atlantic Union Bankshares?

Atlantic Union Bankshares Corporation operates as the holding company for Atlantic Union Bank that provides banking and related financial services to consumers and businesses.

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  • Trading at 12.5% below our estimate of its fair value

  • Earnings are forecast to grow 10.15% per year


No risks detected for AUB from our risks checks.

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About NasdaqGS:AUB

Atlantic Union Bankshares

Atlantic Union Bankshares Corporation operates as the holding company for Atlantic Union Bank that provides banking and related financial services to consumers and businesses.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Future Growth2
Past Performance2
Financial Health6

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet established dividend payer.