Landmark Bancorp (NASDAQ:LARK) Is Due To Pay A Dividend Of US$0.20

The board of Landmark Bancorp, Inc. (NASDAQ:LARK) has announced that it will pay a dividend of US$0.20 per share on the 25th of August. Based on this payment, the dividend yield will be 2.9%, which is fairly typical for the industry.

See our latest analysis for Landmark Bancorp

Landmark Bancorp's Dividend Is Well Covered By Earnings

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. However, Landmark Bancorp's earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.

Over the next year, EPS could expand by 15.7% if recent trends continue. Assuming the dividend continues along recent trends, we think the payout ratio could be 16% by next year, which is in a pretty sustainable range.

Landmark Bancorp Has A Solid Track Record

The company has an extended history of paying stable dividends. The dividend has gone from US$0.44 in 2011 to the most recent annual payment of US$0.80. This works out to be a compound annual growth rate (CAGR) of approximately 6.1% a year 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.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. We are encouraged to see that Landmark Bancorp has grown earnings per share at 16% per year over the past five years. Landmark Bancorp definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Landmark Bancorp Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Landmark Bancorp might even raise payments in the future. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Landmark Bancorp stock. Looking for more high-yielding dividend ideas? Try our curated list of strong dividend payers.

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