Zions Bancorporation National Association (NASDAQ:ZION) Has Affirmed Its Dividend Of $0.41

The board of Zions Bancorporation, National Association (NASDAQ:ZION) has announced that it will pay a dividend of $0.41 per share on the 22nd of August. Based on this payment, the dividend yield will be 3.6%, which is fairly typical for the industry.

View our latest analysis for Zions Bancorporation National Association

Zions Bancorporation National Association's Dividend Forecasted To Be Well Covered By Earnings

While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible.

Having distributed dividends for at least 10 years, Zions Bancorporation National Association 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 40%, which means that Zions Bancorporation National Association would be able to pay its last dividend without pressure on the balance sheet.

Looking forward, EPS is forecast to rise by 32.2% over the next 3 years. Analysts forecast the future payout ratio could be 34% over the same time horizon, which is a number we think the company can maintain.

Zions Bancorporation National Association Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2014, the dividend has gone from $0.16 total annually to $1.64. This implies that the company grew its distributions at a yearly rate of about 26% over that duration. We can see that payments have shown some very nice upward momentum without faltering, which provides some reassurance that future payments will also be reliable.

The Dividend's Growth Prospects Are Limited

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. However, things aren't all that rosy. Unfortunately, Zions Bancorporation National Association's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year.

In Summary

In summary, we are pleased with the dividend remaining consistent, and we think there is a good chance of this continuing in the future. With shrinking earnings, the company may see some issues maintaining the dividend even though they look pretty sustainable for now. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Zions Bancorporation National Association that you should be aware of before investing. Is Zions Bancorporation National Association 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.