Peapack-Gladstone Financial (NASDAQ:PGC) Is Due To Pay A Dividend Of $0.05

The board of Peapack-Gladstone Financial Corporation (NASDAQ:PGC) has announced that it will pay a dividend of $0.05 per share on the 23rd of May. The dividend yield is 0.9% based on this payment, which is a little bit low compared to the other companies in the industry.

Check out our latest analysis for Peapack-Gladstone Financial

Peapack-Gladstone Financial's Payment Expected To Have Solid Earnings Coverage

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. Using data from its latest earnings report, Peapack-Gladstone Financial's payout ratio sits at 9.1%, an extremely comfortable number that shows that it can pay its dividend.

Looking forward, earnings per share is forecast to rise by 14.3% over the next year. If the dividend continues along recent trends, we estimate the future payout ratio will be 7.9%, which is in the range that makes us comfortable with the sustainability of the dividend.

Peapack-Gladstone Financial Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The last annual payment of $0.20 was flat on the annual payment from10 years ago. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

Peapack-Gladstone Financial May Find It Hard To Grow The Dividend

The company's investors will be pleased to have been receiving dividend income for some time. Let's not jump to conclusions as things might not be as good as they appear on the surface. Peapack-Gladstone Financial hasn't seen much change in its earnings per share over the last five years.

In Summary

In summary, we are pleased with the dividend remaining consistent, and we think there is a good chance of this continuing in the future. With shrinking earnings, the company may see some issues maintaining the dividend even though they look pretty sustainable for now. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.

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. For instance, we've picked out 2 warning signs for Peapack-Gladstone Financial that investors should take into consideration. Is Peapack-Gladstone Financial 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.