WesBanco (NASDAQ:WSBC) Has Announced That It Will Be Increasing Its Dividend To $0.35

WesBanco, Inc. (NASDAQ:WSBC) has announced that it will be increasing its dividend from last year's comparable payment on the 3rd of January to $0.35. Based on this payment, the dividend yield for the company will be 3.4%, which is fairly typical for the industry.

Check out the opportunities and risks within the US Banks industry.

WesBanco's Earnings Will Easily Cover The Distributions

We aren't too impressed by dividend yields unless they can be sustained over time.

Having distributed dividends for at least 10 years, WesBanco has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 45%, which means that WesBanco would be able to pay its last dividend without pressure on the balance sheet.

Over the next 3 years, EPS is forecast to expand by 18.2%. The future payout ratio could be 42% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

WesBanco Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2012, the dividend has gone from $0.68 total annually to $1.36. This means that it has been growing its distributions at 7.2% per annum over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

WesBanco Could Grow Its Dividend

Investors could be attracted to the stock based on the quality of its payment history. WesBanco has seen EPS rising for the last five years, at 5.9% per annum. Earnings are on the uptrend, and it is only paying a small portion of those earnings to shareholders.

WesBanco Looks Like A Great Dividend Stock

Overall, a dividend increase is always good, and we think that WesBanco is a strong income stock thanks to its track record and growing earnings. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for WesBanco that you should be aware of before investing. 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.