Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Has Affirmed Its Dividend Of $0.18

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) will pay a dividend of $0.18 on the 28th of June. Based on this payment, the dividend yield will be 3.1%, which is fairly typical for the industry.

Check out our latest analysis for Seacoast Banking Corporation of Florida

Seacoast Banking Corporation of Florida's Payment Expected To Have Solid Earnings Coverage

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.

Having paid out dividends for only 3 years, Seacoast Banking Corporation of Florida does not have much of a history being a dividend paying company. Based on Seacoast Banking Corporation of Florida's last earnings report, calculating for its payout ratio equates to 52%, which means that the company covered its last dividend with comfortable room to spare.

Looking forward, earnings per share is forecast to rise by 10.0% over the next year. Assuming the dividend continues along recent trends, we think the future payout ratio could be 47% by next year, which is in a pretty sustainable range.

Seacoast Banking Corporation of Florida Doesn't Have A Long Payment History

Looking back, the dividend has been stable, but the company hasn't been paying a dividend for very long so we can't be confident that the dividend will remain stable through all economic environments. Since 2021, the annual payment back then was $0.52, compared to the most recent full-year payment of $0.72. This means that it has been growing its distributions at 11% per annum over that time. Seacoast Banking Corporation of Florida has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.

Seacoast Banking Corporation of Florida May Find It Hard To Grow The Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. However, Seacoast Banking Corporation of Florida's EPS was effectively flat over the past five years, which could stop the company from paying more every year.

In Summary

Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. While Seacoast Banking Corporation of Florida is earning enough to cover the dividend, we are generally unimpressed with its future prospects. This company is not in the top tier of income providing stocks.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Taking the debate a bit further, we've identified 1 warning sign for Seacoast Banking Corporation of Florida that investors need to be conscious of moving forward. 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.