WSFS Financial (NASDAQ:WSFS) Is Paying Out 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 18th of August. This means the annual payment will be 1.4% of the current stock price, which is lower than the industry average.

Check out our latest analysis for WSFS Financial

WSFS Financial's Earnings Will Easily Cover The Distributions

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 13%, showing that the company can pay out its dividends comfortably.

EPS is set to fall by 7.5% over the next 12 months. But if the dividend continues along the path it has been on recently, we estimate the future payout ratio could be 16%, which would be comfortable for the company to continue in the future.

WSFS Financial Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of $0.16 in 2013 to the most recent total annual payment of $0.60. This means that it has been growing its distributions at 14% per annum over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. WSFS Financial has impressed us by growing EPS at 14% per 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.

WSFS Financial Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think WSFS Financial might even raise payments in the future. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. If earnings do fall over the next 12 months, the dividend could be buffeted a little bit, but we don't think it should cause too much of a problem in the long term. 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. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for WSFS Financial that investors should know about before committing capital to this stock. Is WSFS Financial not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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.