Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Is Paying Out A Dividend Of $0.18

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) will pay a dividend of $0.18 on the 30th of September. This means the annual payment will be 2.3% of the current stock price, which is lower than the industry average.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Seacoast Banking Corporation of Florida'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.

Having paid out dividends for only 4 years, Seacoast Banking Corporation of Florida does not have much of a history being a dividend paying company. Taking data from Seacoast Banking Corporation of Florida's last earnings report, the payout ratio is at a decent 44%, meaning that the company is able to pay out its dividend with some room to spare.

The next year is set to see EPS grow by 35.1%. If the dividend continues on this path, the future payout ratio could be 40% by next year, which we think can be pretty sustainable going forward.

Check out our latest analysis for Seacoast Banking Corporation of Florida

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

The dividend has been pretty stable looking back, but the company hasn't been paying one for very long. This makes it tough to judge how it would fare through a full economic cycle. The annual payment during the last 4 years was $0.52 in 2021, and the most recent fiscal year payment was $0.72. This works out to be a compound annual growth rate (CAGR) of approximately 8.5% a year over that time. Seacoast Banking Corporation of Florida has a nice track record of dividend growth but we would wait until we see a longer track record before getting too confident.

The Dividend's Growth Prospects Are Limited

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Seacoast Banking Corporation of Florida hasn't seen much change in its earnings per share over the last five years. The company has been growing at a pretty soft 1.1% per annum, and is paying out quite a lot of its earnings to shareholders. While this isn't necessarily a negative, it definitely signals that dividend growth could be constrained in the future unless earnings start to pick up again.

Our Thoughts On Seacoast Banking Corporation of Florida's Dividend

Overall, a consistent dividend is a good thing, and we think that Seacoast Banking Corporation of Florida has the ability to continue this into the future. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 4 analysts we track are forecasting for Seacoast Banking Corporation of Florida for free with public analyst estimates for the company. Is Seacoast Banking Corporation of Florida not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.