United Bankshares (NASDAQ:UBSI) Has Affirmed Its Dividend Of $0.37

United Bankshares, Inc. (NASDAQ:UBSI) has announced that it will pay a dividend of $0.37 per share on the 2nd of January. This means the dividend yield will be fairly typical at 3.5%.

Check out our latest analysis for United Bankshares

United Bankshares' Earnings Will Easily Cover The Distributions

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, United Bankshares has a long history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but United Bankshares' payout ratio of 56% is a good sign as this means that earnings decently cover dividends.

Over the next 3 years, EPS is forecast to expand by 16.6%. The future payout ratio could be 51% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

United Bankshares Has A Solid Track Record

The company has an extended history of paying stable dividends. The annual payment during the last 10 years was $1.28 in 2014, and the most recent fiscal year payment was $1.48. This means that it has been growing its distributions at 1.5% per annum over that time. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

The Dividend's Growth Prospects Are Limited

The company's investors will be pleased to have been receiving dividend income for some time. United Bankshares hasn't seen much change in its earnings per share over the last five years. Growth of 0.7% per annum is not particularly high, which might explain why the company is paying out a higher proportion of earnings. This could mean the dividend doesn't have the growth potential we look for going into the future.

We Really Like United Bankshares' Dividend

Overall, we like to see the dividend staying consistent, and we think United Bankshares might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 United Bankshares analysts we track are forecasting continued growth with our free report on analyst estimates for the company. 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.