Peapack-Gladstone Financial's (NASDAQ:PGC) Dividend Will Be $0.05

Peapack-Gladstone Financial Corporation's (NASDAQ:PGC) investors are due to receive a payment of $0.05 per share on 21st of August. This means the annual payment will be 0.8% of the current stock price, which is lower than the industry average.

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Peapack-Gladstone Financial's Dividend Forecasted To Be Well Covered By Earnings

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

Having distributed dividends for at least 10 years, Peapack-Gladstone Financial has a long history of paying out a part of its earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 11% also shows that Peapack-Gladstone Financial is able to comfortably pay dividends.

Over the next year, EPS is forecast to expand by 47.3%. If the dividend continues along recent trends, we estimate the future payout ratio will be 7.3%, which is in the range that makes us comfortable with the sustainability of the dividend.

Check out 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. There hasn't been much of a change in the dividend over the last 10 years. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.

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

Investors could be attracted to the stock based on the quality of its payment history. Although it's important to note that Peapack-Gladstone Financial's earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time. 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. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Are management backing themselves to deliver performance? Check their shareholdings in Peapack-Gladstone Financial in our latest insider ownership analysis. If you are a dividend investor, you might also want to look at our curated list of high yield 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.