Wabash National's (NYSE:WNC) Dividend Will Be $0.08

Wabash National Corporation (NYSE:WNC) has announced that it will pay a dividend of $0.08 per share on the 26th of October. This payment means that the dividend yield will be 1.4%, which is around the industry average.

Check out our latest analysis for Wabash National

Wabash National's Dividend Is Well Covered By Earnings

We aren't too impressed by dividend yields unless they can be sustained over time. Before making this announcement, Wabash National was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business.

Looking forward, earnings per share is forecast to fall by 20.2% over the next year. If the dividend continues along the path it has been on recently, we estimate the payout ratio could be 10%, which is comfortable for the company to continue in the future.

Wabash National Doesn't Have A Long Payment History

Wabash National'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 $0.24 in 2016 to the most recent total annual payment of $0.32. This works out to be a compound annual growth rate (CAGR) of approximately 4.2% a year over that time. Wabash National hasn't been paying a dividend for very long, so we wouldn't get to excited about its record of growth just yet.

The Dividend Looks Likely To Grow

Investors could be attracted to the stock based on the quality of its payment history. Wabash National has impressed us by growing EPS at 16% per year over the past five years. Wabash National definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

Wabash National Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. The distributions are easily covered by earnings, and there is plenty of cash being generated as well. However, it is worth noting that the earnings are expected to fall over the next year, which may not change the long term outlook, but could affect the dividend payment in the next 12 months. All in all, this checks a lot of the boxes we look for when choosing an income stock.

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. For example, we've identified 2 warning signs for Wabash National (1 is concerning!) that you should be aware of before investing. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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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.