Hancock Whitney (NASDAQ:HWC) Has Announced A Dividend Of $0.27

Hancock Whitney Corporation (NASDAQ:HWC) will pay a dividend of $0.27 on the 15th of December. This payment means the dividend yield will be 1.9%, which is below the average for the industry.

Our analysis indicates that HWC is potentially undervalued!

Hancock Whitney's Payment Expected To Have Solid Earnings Coverage

While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.

Hancock Whitney has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past data isn't a guarantee for the future, Hancock Whitney's latest earnings report puts its payout ratio at 18%, showing that the company can pay out its dividends comfortably.

Looking forward, EPS is forecast to rise by 7.3% over the next 3 years. Analysts estimate the future payout ratio will be 19% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.

Hancock Whitney 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 $0.96, compared to the most recent full-year payment of $1.08. This implies that the company grew its distributions at a yearly rate of about 1.2% over that duration. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Hancock Whitney has seen EPS rising for the last five years, at 19% per annum. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

Hancock Whitney Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Hancock Whitney might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 1 warning sign for Hancock Whitney that you should be aware of before investing. Is Hancock Whitney 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.