Peapack-Gladstone Financial (NASDAQ:PGC) Has Affirmed Its Dividend Of $0.05

Peapack-Gladstone Financial Corporation's (NASDAQ:PGC) investors are due to receive a payment of $0.05 per share on 28th of November. Including this payment, the dividend yield on the stock will be 0.7%, which is a modest boost for shareholders' returns.

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Peapack-Gladstone Financial'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.

Peapack-Gladstone Financial has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past data isn't a guarantee for the future, Peapack-Gladstone Financial's latest earnings report puts its payout ratio at 10%, showing that the company can pay out its dividends comfortably.

The next 3 years are set to see EPS grow by 164.0%. Analysts forecast the future payout ratio could be 4.8% over the same time horizon, which is a number we think the company can maintain.

View our latest analysis for Peapack-Gladstone Financial

Peapack-Gladstone Financial Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. The most recent annual payment of $0.20 is about the same as the annual payment 10 years ago. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.

Dividend Growth May Be Hard To Achieve

The company's investors will be pleased to have been receiving dividend income for some time. Unfortunately, Peapack-Gladstone Financial's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year. While EPS growth is quite low, Peapack-Gladstone Financial has the option to increase the payout ratio to return more cash to shareholders.

Peapack-Gladstone Financial Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Peapack-Gladstone Financial 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. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for Peapack-Gladstone Financial that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.