Pinnacle Financial Partners (NASDAQ:PNFP) Will Pay A Dividend Of $0.22

Pinnacle Financial Partners, Inc. (NASDAQ:PNFP) will pay a dividend of $0.22 on the 29th of November. This payment means the dividend yield will be 0.8%, which is below the average for the industry.

See our latest analysis for Pinnacle Financial Partners

Pinnacle Financial Partners' 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.

Having distributed dividends for at least 10 years, Pinnacle Financial Partners 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 17% also shows that Pinnacle Financial Partners is able to comfortably pay dividends.

The next 3 years are set to see EPS grow by 88.7%. The future payout ratio could be 11% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Pinnacle Financial Partners 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 annual payment during the last 10 years was $0.32 in 2014, and the most recent fiscal year payment was $0.88. This means that it has been growing its distributions at 11% per annum over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

Pinnacle Financial Partners May Find It Hard To Grow The Dividend

The company's investors will be pleased to have been receiving dividend income for some time. However, Pinnacle Financial Partners' EPS was effectively flat over the past five years, which could stop the company from paying more every year. While EPS growth is quite low, Pinnacle Financial Partners has the option to increase the payout ratio to return more cash to shareholders.

We Really Like Pinnacle Financial Partners' Dividend

Overall, we like to see the dividend staying consistent, and we think Pinnacle Financial Partners 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.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 9 analysts we track are forecasting for Pinnacle Financial Partners for free with public analyst estimates for the company. Is Pinnacle Financial Partners not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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