- United States
- /
- Banks
- /
- NasdaqGS:UVSP
Univest Financial (NASDAQ:UVSP) Is Paying Out A Larger Dividend Than Last Year
Univest Financial Corporation (NASDAQ:UVSP) will increase its dividend on the 25th of May to US$0.21. Based on the announced payment, the dividend yield for the company will be 3.2%, which is fairly typical for the industry.
View our latest analysis for Univest Financial
Univest Financial's Earnings Easily Cover the Distributions
While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. Before making this announcement, Univest Financial was easily earning enough to cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.
Over the next year, EPS is forecast to expand by 2.7%. Assuming the dividend continues along recent trends, we think the payout ratio could be 29% by next year, which is in a pretty sustainable range.
Univest Financial Has A Solid Track Record
The company has an extended history of paying stable dividends. Since 2012, the first annual payment was US$0.80, compared to the most recent full-year payment of US$0.84. Its dividends have grown at less than 1% per annum over this time frame. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.
The Dividend Looks Likely To Grow
Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Univest Financial has impressed us by growing EPS at 24% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.
We Really Like Univest Financial's Dividend
Overall, a dividend increase is always good, and we think that Univest Financial is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.
It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. 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 4 Univest Financial analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Univest Financial not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.
New: AI Stock Screener & Alerts
Our new AI Stock Screener scans the market every day to uncover opportunities.
• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies
Or build your own from over 50 metrics.
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.
About NasdaqGS:UVSP
Univest Financial
Operates as the bank holding company for Univest Bank and Trust Co.
Flawless balance sheet established dividend payer.