Zions Bancorporation National Association (NASDAQ:ZION) Is Due To Pay A Dividend Of $0.41

Zions Bancorporation, National Association's (NASDAQ:ZION) investors are due to receive a payment of $0.41 per share on 16th of November. Based on this payment, the dividend yield on the company's stock will be 5.3%, which is an attractive boost to shareholder returns.

See our latest analysis for Zions Bancorporation National Association

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

A big dividend yield for a few years doesn't mean much if it can't be sustained.

Zions Bancorporation National Association has a long history of paying out dividends, with its current track record at a minimum of 10 years. Based on Zions Bancorporation National Association's last earnings report, the payout ratio is at a decent 30%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Looking forward, earnings per share is forecast to fall by 22.6% over the next 3 years. Fortunately, analysts forecast the future payout ratio to be 39% over the same time horizon, which is in the range that makes us comfortable with the sustainability of the dividend.

Zions Bancorporation National Association Has A Solid Track Record

The company has been paying a dividend for a long time, and it has been quite stable which gives us confidence in the future dividend potential. Since 2013, the dividend has gone from $0.04 total annually to $1.64. This works out to be a compound annual growth rate (CAGR) of approximately 45% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period.

Zions Bancorporation National Association Could Grow Its Dividend

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 Zions Bancorporation National Association has been growing its earnings per share at 7.4% a year over the past five years. Zions Bancorporation National Association definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like Zions Bancorporation National Association'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 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. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. As an example, we've identified 1 warning sign for Zions Bancorporation National Association that you should be aware of before investing. 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.