An In-Depth Look at the Upcoming Dividend and Historical Performance
Lakeland Financial Corp (LKFN, Financial) recently announced a dividend of $0.48 per share, payable on 2024-02-05, with the ex-dividend date set for 2024-01-24. 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 look into Lakeland Financial Corp's dividend performance and assess its sustainability.
What Does Lakeland Financial Corp Do?
Lakeland Financial Corp is a bank holding company that offers a comprehensive range of financial services. With a focus on commercial, retail, wealth advisory, and investment management services, Lakeland Financial Corp serves a diverse clientele across Northern and Central Indiana. The company's offerings encompass commercial and consumer banking, trust and wealth management, brokerage, and treasury management commercial services, catering to sectors such as real estate, manufacturing, agriculture, and healthcare, among others.
A Glimpse at Lakeland Financial Corp's Dividend History
Lakeland Financial Corp has upheld a steadfast commitment to dividend payments since 1994, with dividends issued quarterly. The company's dedication to increasing shareholder value is evident in its status as a dividend achiever, a distinction reserved for companies that have raised their dividends annually for at least 18 consecutive years. For investors, tracking the historical Dividends Per Share can provide valuable insight into Lakeland Financial Corp's stability and growth.
Breaking Down Lakeland Financial Corp's Dividend Yield and Growth
Lakeland Financial Corp's current 12-month trailing dividend yield stands at 2.85%, with a forward dividend yield projected at 2.97%. This anticipates an uptick in dividend disbursements over the next year. Over the past three years, the annual dividend growth rate has been 11.30%, expanding to 12.50% over a five-year span. The decade-long growth rate is an impressive 14.00%. Consequently, the 5-year yield on cost for Lakeland Financial Corp stock is approximately 5.14%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is a critical metric for evaluating dividend sustainability. Lakeland Financial Corp's payout ratio is currently 0.51, indicating a balanced approach to earnings distribution and retention for growth. The company's profitability rank is 6 out of 10, reflecting fair profitability, with a consistent record of positive net income over the past decade.
Growth Metrics: The Future Outlook
Lakeland Financial Corp's growth rank of 6 suggests a fair growth outlook. The company's revenue per share and 3-year revenue growth rate, at an average of 8.90% per year, outperform approximately 63.34% of global competitors. Additionally, the 3-year EPS growth rate of 6.10% per year outperforms approximately 41.51% of global competitors. The 5-year EBITDA growth rate of 10.50% also outperforms approximately 57.69% of global competitors, indicating robust financial health and potential for sustained dividend payments.
Next Steps
For Lakeland Financial Corp, the consistency in dividend payments, coupled with a commendable dividend growth rate, payout ratio, and profitability, paints a promising picture for current and prospective investors. The growth metrics further bolster confidence in the company's ability to maintain and potentially increase its dividends. As value investors consider Lakeland Financial Corp for their portfolios, they may find solace in the company's stable financial performance and commitment to shareholder returns. Will Lakeland Financial Corp continue its trajectory of dividend growth, and how will this influence your investment strategy?
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
