Glacier Bancorp (NYSE:GBCI) Has Affirmed Its Dividend Of $0.33

Glacier Bancorp, Inc.'s (NYSE:GBCI) investors are due to receive a payment of $0.33 per share on 18th of July. This payment means that the dividend yield will be 3.5%, which is around the industry average.

See our latest analysis for Glacier Bancorp

Glacier Bancorp's Earnings Will Easily Cover The Distributions

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

Glacier Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Glacier Bancorp's last earnings report, the payout ratio is at a decent 76%, 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 18.3%. Under the assumption that the dividend will continue along recent trends, we think the future payout ratio could be 70% which would be quite comfortable going to take the dividend forward.

Dividend Volatility

While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. The annual payment during the last 10 years was $0.60 in 2014, and the most recent fiscal year payment was $1.32. This works out to be a compound annual growth rate (CAGR) of approximately 8.2% a year over that time. We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record.

Dividend Growth May Be Hard To Come By

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Glacier Bancorp has seen earnings per share falling at 5.5% per year over the last five years. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. Earnings are predicted to grow over the next year, but we would remain cautious until a track record of earnings growth is established.

Our Thoughts On Glacier Bancorp's Dividend

In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Glacier Bancorp's payments, as there could be some issues with sustaining them into the future. The track record isn't great, and the payments are a bit high to be considered sustainable. We would probably look elsewhere for an income investment.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 2 warning signs for Glacier Bancorp that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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