Capital City Bank Group (NASDAQ:CCBG) Will Pay A Larger Dividend Than Last Year At $0.17

Capital City Bank Group, Inc. (NASDAQ:CCBG) will increase its dividend on the 26th of September to $0.17, which is 6.3% higher than last year's payment from the same period of $0.16. Although the dividend is now higher, the yield is only 1.9%, which is below the industry average.

Check out our latest analysis for Capital City Bank Group

Capital City Bank Group's Dividend Forecasted To Be Well Covered By Earnings

If it is predictable over a long period, even low dividend yields can be attractive.

Having paid out dividends for 9 years, Capital City Bank Group has a good history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio of 32%shows that Capital City Bank Group would be able to pay its last dividend without pressure on the balance sheet.

Looking forward, EPS is forecast to rise by 69.3% over the next 3 years. Analysts forecast the future payout ratio could be 21% over the same time horizon, which is a number we think the company can maintain.

Capital City Bank Group Is Still Building Its Track Record

The dividend's track record has been pretty solid, but with only 9 years of history we want to see a few more years of history before making any solid conclusions. The annual payment during the last 9 years was $0.08 in 2013, and the most recent fiscal year payment was $0.64. This implies that the company grew its distributions at a yearly rate of about 26% over that duration. It is always nice to see strong dividend growth, but with such a short payment history we wouldn't be inclined to rely on it until a longer track record can be developed.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that Capital City Bank Group has been growing its earnings per share at 22% a year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

Capital City Bank Group Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that Capital City Bank Group is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. 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. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 2 warning signs for Capital City Bank Group that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.