TrustCo Bank Corp NY (NASDAQ:TRST) Is Due To Pay A Dividend Of $0.36

The board of TrustCo Bank Corp NY (NASDAQ:TRST) has announced that it will pay a dividend of $0.36 per share on the 2nd of January. The dividend yield will be 5.2% based on this payment which is still above the industry average.

Check out our latest analysis for TrustCo Bank Corp NY

TrustCo Bank Corp NY's Earnings Will Easily Cover The Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much.

TrustCo Bank Corp NY has a long history of paying out dividends, with its current track record at a minimum of 10 years. Past distributions do not necessarily guarantee future ones, but TrustCo Bank Corp NY's payout ratio of 39% is a good sign as this means that earnings decently cover dividends.

Looking forward, earnings per share is forecast to fall by 17.2% over the next 3 years. However, as estimated by analysts, the future payout ratio could be 47% over the same time period, which we think the company can easily maintain.

TrustCo Bank Corp NY Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2013, the annual payment back then was $1.31, compared to the most recent full-year payment of $1.44. Dividend payments have grown at less than 1% a year over this period. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

We Could See TrustCo Bank Corp NY's Dividend Growing

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. TrustCo Bank Corp NY has impressed us by growing EPS at 6.0% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for TrustCo Bank Corp NY's prospects of growing its dividend payments in the future.

We Really Like TrustCo Bank Corp NY's Dividend

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. We should point out that the earnings are expected to fall over the next 12 months, which won't be a problem if this doesn't become a trend, but could cause some turbulence in the next year. 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. For example, we've picked out 1 warning sign for TrustCo Bank Corp NY that investors should know about before committing capital to this stock. Is TrustCo Bank Corp NY not quite the opportunity you were looking for? Why not check out our selection of top 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.