Delving Into the Dividend Details of Union Bankshares Inc
Union Bankshares Inc (UNB, Financial) recently announced a dividend of $0.36 per share, payable on 2024-02-01, with the ex-dividend date set for 2024-01-25. 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 Union Bankshares Inc's dividend performance and assess its sustainability.
What Does Union Bankshares Inc Do?
Union Bankshares Inc operates as a community bank in the financial services industry. It offers retail and commercial banking services to its customers through its branches, ATMs, telebanking, and internet banking systems. The company provides retail banking services to individuals and commercial banking services to small and medium-sized corporations, partnerships, and sole proprietorships, as well as nonprofit organizations, local municipalities, and school districts within its market area. In addition, it also offers fiduciary and asset management services through its Asset Management Group. Geographically, all the business activity is functioned through the US.
A Glimpse at Union Bankshares Inc's Dividend History
Union Bankshares Inc has maintained a consistent dividend payment record since 1997, with dividends currently distributed on a quarterly basis. Union Bankshares Inc has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Union Bankshares Inc's Dividend Yield and Growth
As of today, Union Bankshares Inc currently has a 12-month trailing dividend yield of 4.67% and a 12-month forward dividend yield of 4.67%, suggesting an expectation of the same dividend payments over the next 12 months.
Over the past three years, Union Bankshares Inc's annual dividend growth rate was 4.10%. Extended to a five-year horizon, this rate decreased to 3.70% per year. And over the past decade, Union Bankshares Inc's annual dividends per share growth rate stands at 3.50%.
Based on Union Bankshares Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Union Bankshares Inc stock as of today is approximately 5.60%.
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 2023-09-30, Union Bankshares Inc's dividend payout ratio is 0.56.
Union Bankshares Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Union Bankshares Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of the past ten years, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Union Bankshares Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Union Bankshares Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Union Bankshares Inc's revenue has increased by approximately 5.70% per year on average, a rate that underperforms approximately 53.42% 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, Union Bankshares Inc's earnings increased by approximately 5.40% per year on average, a rate that underperforms approximately 61.46% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 12.00%, which underperforms approximately 36.79% of global competitors.
Next Steps
In conclusion, Union Bankshares Inc's consistent dividend payments, coupled with a history of dividend growth, present an appealing picture for income-focused investors. The company's moderate payout ratio and profitability suggest that its dividends are well-supported by its earnings. However, investors should also consider the growth metrics, which indicate a fair growth outlook, though they may lag behind some global competitors. These factors combined provide a comprehensive view of Union Bankshares Inc's ability to maintain and potentially grow its dividends. For those seeking to expand their portfolio with high-dividend yield stocks, GuruFocus Premium users can screen for such stocks using the High Dividend Yield Screener.
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.
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