Zions Bancorporation National Association (NASDAQ:ZION) Will Pay A Larger Dividend Than Last Year At $0.41

The board of Zions Bancorporation, National Association (NASDAQ:ZION) has announced that the dividend on 25th of August will be increased to $0.41, which will be 7.9% higher than last year's payment of $0.38 which covered the same period. The payment will take the dividend yield to 2.8%, which is in line with the average for the industry.

View our latest analysis for Zions Bancorporation National Association

Zions Bancorporation National Association's Payment Expected To Have Solid Earnings Coverage

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

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 28%, meaning that the company is able to pay out its dividend with a bit of room to spare.

Over the next 3 years, EPS is forecast to expand by 23.5%. The future payout ratio could be 28% over that time period, according to analyst estimates, which is a good look for the future 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 2012, the dividend has gone from $0.04 total annually to $1.52. This implies that the company grew its distributions at a yearly rate of about 44% 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.

The Dividend Looks Likely To Grow

The company's investors will be pleased to have been receiving dividend income for some time. It's encouraging to see that Zions Bancorporation National Association has been growing its earnings per share at 16% 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.

Zions Bancorporation National Association Looks Like A Great Dividend Stock

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 17 analysts we track are forecasting for Zions Bancorporation National Association for free with public analyst estimates for the company. 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.