Byline Bancorp (NYSE:BY) Has Announced A Dividend Of $0.09

Byline Bancorp, Inc.'s (NYSE:BY) investors are due to receive a payment of $0.09 per share on 19th of November. The dividend yield is 1.3% based on this payment, which is a little bit low compared to the other companies in the industry.

See our latest analysis for Byline Bancorp

Byline Bancorp's Payment Expected To Have Solid Earnings Coverage

While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.

Byline Bancorp has a good history of paying out dividends, with its current track record at 5 years. While past records don't necessarily translate into future results, the company's payout ratio of 13% also shows that Byline Bancorp is able to comfortably pay dividends.

Over the next 3 years, EPS is forecast to fall by 3.6%. Despite that, analysts estimate the future payout ratio could be 15% over the same time period, which is in a pretty comfortable range.

Byline Bancorp Is Still Building Its Track Record

The dividend's track record has been pretty solid, but with only 5 years of history we want to see a few more years of history before making any solid conclusions. Since 2019, the dividend has gone from $0.12 total annually to $0.36. This implies that the company grew its distributions at a yearly rate of about 25% over that duration. Byline Bancorp has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle.

Byline Bancorp 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 Byline Bancorp has been growing its earnings per share at 9.7% a year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Byline Bancorp's prospects of growing its dividend payments in the future.

Byline Bancorp Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Byline Bancorp might even raise payments in the future. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. If earnings do fall over the next 12 months, the dividend could be buffeted a little bit, but we don't think it should cause too much of a problem in the long term. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for Byline Bancorp that investors should know about before committing capital to this stock. Is Byline Bancorp 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.