Origin Bancorp (NYSE:OBK) Is Paying Out A Dividend Of $0.15

Origin Bancorp, Inc. (NYSE:OBK) has announced that it will pay a dividend of $0.15 per share on the 30th of May. The dividend yield is 1.9% based on this payment, which is a little bit low compared to the other companies in the industry.

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Origin Bancorp's Dividend Forecasted To Be Well Covered By Earnings

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

Origin Bancorp has established itself as a dividend paying company, given its 7-year history of distributing earnings to shareholders. While past data isn't a guarantee for the future, Origin Bancorp's latest earnings report puts its payout ratio at 24%, showing that the company can pay out its dividends comfortably.

Over the next year, EPS is forecast to expand by 18.7%. If the dividend continues on this path, the future payout ratio could be 25% by next year, which we think can be pretty sustainable going forward.

See our latest analysis for Origin Bancorp

Origin Bancorp Is Still Building Its Track Record

Origin Bancorp's dividend has been pretty stable for a little while now, but we will continue to be cautious until it has been demonstrated for a few more years. The dividend has gone from an annual total of $0.13 in 2018 to the most recent total annual payment of $0.60. This implies that the company grew its distributions at a yearly rate of about 24% over that duration. We're not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.

Origin 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. Origin Bancorp has impressed us by growing EPS at 7.1% per year over the past five years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

In Summary

In summary, we are pleased with the dividend remaining consistent, and we think there is a good chance of this continuing in the future. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. Earnings growth generally bodes well for the future value of company dividend payments. See if the 5 Origin Bancorp analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Is Origin 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.