Great Southern Bancorp (NASDAQ:GSBC) Has Affirmed Its Dividend Of $0.40

The board of Great Southern Bancorp, Inc. (NASDAQ:GSBC) has announced that it will pay a dividend of $0.40 per share on the 15th of October. This payment means that the dividend yield will be 2.7%, which is around the industry average.

View our latest analysis for Great Southern Bancorp

Great Southern Bancorp's Earnings Will Easily Cover The Distributions

While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.

Great Southern Bancorp has a long history of paying out dividends, with its current track record at a minimum of 10 years. Based on Great Southern Bancorp's last earnings report, the payout ratio is at a decent 32%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Over the next year, EPS is forecast to fall by 2.4%. But if the dividend continues along recent trends, we estimate the future payout ratio could be 35%, which we would consider to be quite comfortable looking forward, with most of the company's earnings left over to grow the business in the future.

Great Southern Bancorp Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2014, the dividend has gone from $0.72 total annually to $1.60. This means that it has been growing its distributions at 8.3% per annum over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns.

Dividend Growth May Be Hard To Achieve

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. Great Southern Bancorp hasn't seen much change in its earnings per share over the last five years.

Our Thoughts On Great Southern Bancorp's Dividend

Overall, we think Great Southern Bancorp is a solid choice as a dividend stock, even though the dividend wasn't raised this year. The earnings coverage is acceptable for now, but with earnings on the decline we would definitely keep an eye on the payout ratio. Taking all of this into consideration, the dividend looks viable moving forward, but investors should be mindful that the company has pushed the boundaries of sustainability in the past and may do so again.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Just as an example, we've come across 2 warning signs for Great Southern Bancorp you should be aware of, and 1 of them can't be ignored. Is Great Southern Bancorp not quite the opportunity you were looking for? Why not check out our selection of top 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.