Hancock Whitney (NASDAQ:HWC) Is Paying Out A Dividend Of $0.27

Hancock Whitney Corporation (NASDAQ:HWC) will pay a dividend of $0.27 on the 15th of September. The dividend yield is 2.2% based on this payment, which is a little bit low compared to the other companies in the industry.

Check out our latest analysis for Hancock Whitney

Hancock Whitney's Earnings Will Easily Cover The Distributions

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

Having distributed dividends for at least 10 years, Hancock Whitney has a long history of paying out a part of its earnings to shareholders. While past data isn't a guarantee for the future, Hancock Whitney's latest earnings report puts its payout ratio at 19%, showing that the company can pay out its dividends comfortably.

The next 3 years are set to see EPS grow by 8.9%. Analysts forecast the future payout ratio could be 19% over the same time horizon, which is a number we think the company can maintain.

Hancock Whitney Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.96 in 2012, and the most recent fiscal year payment was $1.08. This implies that the company grew its distributions at a yearly rate of about 1.2% over that duration. 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

The company's investors will be pleased to have been receiving dividend income for some time. Hancock Whitney has seen EPS rising for the last five years, at 20% 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.

We Really Like Hancock Whitney's Dividend

Overall, we like to see the dividend staying consistent, and we think Hancock Whitney might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Hancock Whitney that investors need to be conscious of moving forward. Is Hancock Whitney not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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.