Atlantic Union Bankshares (NYSE:AUB) Will Pay A Dividend Of $0.30

Atlantic Union Bankshares Corporation (NYSE:AUB) has announced that it will pay a dividend of $0.30 per share on the 25th of August. 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.

Check out our latest analysis for Atlantic Union Bankshares

Atlantic Union Bankshares' Payment Expected To Have Solid Earnings Coverage

Solid dividend yields are great, but they only really help us if the payment is sustainable.

Atlantic Union Bankshares has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Atlantic Union Bankshares' last earnings report, the payout ratio is at a decent 43%, meaning that the company is able to pay out its dividend with a bit of room to spare.

The next year is set to see EPS grow by 0.1%. Assuming the dividend continues along recent trends, we think the future payout ratio could be 47% by next year, which is in a pretty sustainable range.

Atlantic Union Bankshares Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2013, the annual payment back then was $0.48, compared to the most recent full-year payment of $1.20. This implies that the company grew its distributions at a yearly rate of about 9.6% over that duration. The growth of the dividend has been pretty reliable, so we think this can offer investors some nice additional income in their portfolio.

We Could See Atlantic Union Bankshares' Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. Atlantic Union Bankshares has impressed us by growing EPS at 8.3% per year over the past five years. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing.

We Really Like Atlantic Union Bankshares' 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. 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.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 3 analysts we track are forecasting for Atlantic Union Bankshares 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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