WSFS Financial (NASDAQ:WSFS) Is Due To Pay A Dividend Of $0.15

WSFS Financial Corporation (NASDAQ:WSFS) has announced that it will pay a dividend of $0.15 per share on the 22nd of November. This payment means the dividend yield will be 1.2%, which is below the average for the industry.

View our latest analysis for WSFS Financial

WSFS Financial's Dividend Forecasted To Be Well Covered By Earnings

While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.

WSFS Financial has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past data isn't a guarantee for the future, WSFS Financial's latest earnings report puts its payout ratio at 14%, showing that the company can pay out its dividends comfortably.

Looking forward, EPS is forecast to rise by 7.0% over the next 3 years. Analysts forecast the future payout ratio could be 13% over the same time horizon, which is a number we think the company can maintain.

WSFS Financial Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. The annual payment during the last 10 years was $0.16 in 2014, and the most recent fiscal year payment was $0.60. This implies that the company grew its distributions at a yearly rate of about 14% over that duration. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

We Could See WSFS Financial's Dividend Growing

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. It's encouraging to see that WSFS Financial has been growing its earnings per share at 8.2% a year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

We Really Like WSFS Financial's 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. 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. All of these factors considered, we think this has solid potential as a dividend stock.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 1 warning sign for WSFS Financial that investors should take into consideration. Is WSFS Financial 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.