First Internet Bancorp (NASDAQ:INBK) Has Announced A Dividend Of $0.06

First Internet Bancorp's (NASDAQ:INBK) investors are due to receive a payment of $0.06 per share on 15th of April. This means the annual payment will be 0.9% of the current stock price, which is lower than the industry average.

First Internet Bancorp's Earnings Will Easily Cover The Distributions

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.

First Internet Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 8.3% also shows that First Internet Bancorp is able to comfortably pay dividends.

The next 3 years are set to see EPS grow by 104.9%. Analysts forecast the future payout ratio could be 4.7% over the same time horizon, which is a number we think the company can maintain.

See our latest analysis for First Internet Bancorp

First Internet Bancorp Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The payments haven't really changed that much since 10 years ago. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

First Internet Bancorp May Find It Hard To Grow The Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Earnings have grown at around 2.9% a year for the past five years, which isn't massive but still better than seeing them shrink. While growth may be thin on the ground, First Internet Bancorp could always pay out a higher proportion of earnings to increase shareholder returns.

First Internet Bancorp Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. 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. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 4 First Internet Bancorp analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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