WSFS Financial (NASDAQ:WSFS) Is Paying Out A Dividend Of $0.15

WSFS Financial Corporation's (NASDAQ:WSFS) investors are due to receive a payment of $0.15 per share on 23rd of August. This payment means the dividend yield will be 1.1%, which is below the average for the industry.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that WSFS Financial's stock price has increased by 32% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

See our latest analysis for WSFS Financial

WSFS Financial's Earnings Will Easily Cover The Distributions

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

Having distributed dividends for at least 10 years, WSFS Financial has a long history of paying out a part of its earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 13% also shows that WSFS Financial is able to comfortably pay dividends.

Looking forward, earnings per share is forecast to fall by 0.6% over the next year. But if the dividend continues along recent trends, we estimate the future payout ratio could be 15%, which we would consider to be quite comfortable looking forward, with most of the company's earnings left over to grow the business in the future.

WSFS Financial Has A Solid Track Record

The company has an extended history of paying stable dividends. The dividend has gone from an annual total of $0.16 in 2014 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. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

We Could See WSFS Financial's Dividend Growing

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. WSFS Financial has seen EPS rising for the last five years, at 8.7% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

We Really Like WSFS Financial's Dividend

Overall, we like to see the dividend staying consistent, and we think WSFS Financial might even raise payments in the future. The earnings easily cover the company's distributions, and the company is generating plenty of cash. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for WSFS Financial that investors should know about before committing capital to this stock. 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.

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