Zions Bancorporation National Association (NASDAQ:ZION) Will 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 23rd of May. This means that the annual payment will be 3.8% of the current stock price, 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

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.

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 41%, which means that Zions Bancorporation National Association would be able to pay its last dividend without pressure on the balance sheet.

Over the next 3 years, EPS is forecast to expand by 29.9%. Analysts forecast the future payout ratio could be 36% 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 a sustained record of paying dividends with very little fluctuation. Since 2014, the annual payment back then was $0.16, compared to the most recent full-year payment of $1.64. This works out to be a compound annual growth rate (CAGR) of approximately 26% a year over that time. Rapidly growing dividends for a long time is a very valuable feature for an income stock.

Dividend Growth May Be Hard To Achieve

The company's investors will be pleased to have been receiving dividend income for some time. Let's not jump to conclusions as things might not be as good as they appear on the surface. Zions Bancorporation National Association hasn't seen much change in its earnings per share over the last five years.

In Summary

Overall, we think Zions Bancorporation National Association is a solid choice as a dividend stock, even though the dividend wasn't raised this year. While the payments look sustainable for now, earnings have been shrinking so the dividend could come under pressure in the future. This looks like it could be a good dividend stock going forward, but we would note that the payout ratio has been at higher levels in the past so it could happen again.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. 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.