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

WSFS Financial Corporation (NASDAQ:WSFS) will pay a dividend of $0.15 on the 21st of February. Including this payment, the dividend yield on the stock will be 1.1%, which is a modest boost for shareholders' returns.

Check out our latest analysis for WSFS Financial

WSFS Financial's Earnings Will Easily Cover The Distributions

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.

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 14% also shows that WSFS Financial is able to comfortably pay dividends.

Looking forward, EPS is forecast to rise by 13.1% over the next 3 years. Analysts estimate the future payout ratio will be 13% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.

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 2015 to the most recent total annual payment of $0.60. This implies that the company grew its distributions at a yearly rate of about 14% over that duration. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

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. WSFS Financial has seen EPS rising for the last five years, at 8.3% per annum. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

WSFS Financial Looks Like A Great Dividend Stock

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. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend 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.

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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.