TriCo Bancshares' (NASDAQ:TCBK) Dividend Will Be $0.33

TriCo Bancshares (NASDAQ:TCBK) has announced that it will pay a dividend of $0.33 per share on the 21st of March. Based on this payment, the dividend yield will be 3.0%, which is fairly typical for the industry.

View our latest analysis for TriCo Bancshares

TriCo Bancshares' Dividend Forecasted To Be Well Covered By Earnings

We like a dividend to be consistent over the long term, so checking whether it is sustainable is important.

Having distributed dividends for at least 10 years, TriCo Bancshares has a long history of paying out a part of its earnings to shareholders. Based on TriCo Bancshares' last earnings report, the payout ratio is at a decent 38%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Looking forward, EPS is forecast to rise by 8.5% over the next 3 years. The future payout ratio could be 37% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

TriCo Bancshares Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2015, the annual payment back then was $0.44, compared to the most recent full-year payment of $1.32. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

Dividend Growth May Be Hard To Achieve

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, TriCo Bancshares has only grown its earnings per share at 2.9% per annum over the past five years. While growth may be thin on the ground, TriCo Bancshares could always pay out a higher proportion of earnings to increase shareholder returns.

We Really Like TriCo Bancshares' Dividend

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Taking the debate a bit further, we've identified 1 warning sign for TriCo Bancshares 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.