A Deep Dive into the Dividend Performance and Sustainability of Guaranty Bancshares Inc
Guaranty Bancshares Inc (GNTY, Financial) recently announced a dividend of $0.23 per share, payable on 2023-10-11, with the ex-dividend date set for 2023-09-22. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Guaranty Bancshares Inc's dividend performance and assess its sustainability.
What Does Guaranty Bancshares Inc Do?
Guaranty Bancshares Inc is a bank holding company conducting banking activities through its wholly-owned subsidiary. The company provides its customers with a full array of relationship-driven commercial and consumer banking products and services, as well as mortgage, trust, and wealth management products and services that are tailored to meet the needs of small and medium-sized businesses, professionals, and individuals. It also provides other services such as Credit cards, Personal Loans, Account Management, Business Checking, Treasury Management, Business savings, and other related services. The company generates its revenue from interest on loans and investments, customer service and loan fees, fees related to the sale of mortgage loans, and trust and wealth management services.
A Glimpse at Guaranty Bancshares Inc's Dividend History
Guaranty Bancshares Inc has maintained a consistent dividend payment record since 2017. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Guaranty Bancshares Inc's Dividend Yield and Growth
As of today, Guaranty Bancshares Inc currently has a 12-month trailing dividend yield of 3.24% and a 12-month forward dividend yield of 3.31%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Guaranty Bancshares Inc's annual dividend growth rate was 11.40%. Extended to a five-year horizon, this rate increased to 17.60% per year.
Based on Guaranty Bancshares Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Guaranty Bancshares Inc stock as of today is approximately 7.29%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, Guaranty Bancshares Inc's dividend payout ratio is 0.29.
Guaranty Bancshares Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Guaranty Bancshares Inc's profitability 5 out of 10 as of 2023-06-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Guaranty Bancshares Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Guaranty Bancshares Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Guaranty Bancshares Inc's revenue has increased by approximately 13.20% per year on average, a rate that outperforms than approximately 78.06% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Guaranty Bancshares Inc's earnings increased by approximately 17.70% per year on average, a rate that outperforms than approximately 71.68% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 22.20%, which outperforms than approximately 84.16% of global competitors.
Conclusion
In conclusion, Guaranty Bancshares Inc has demonstrated a strong commitment to rewarding its shareholders with consistent dividend payments. With its robust dividend growth rate, prudent payout ratio, fair profitability, and impressive growth metrics, the company appears well-positioned to sustain its dividend payments in the long run. However, investors should continue to monitor these factors to ensure the company's ability to maintain its dividend performance.
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