Colony Bankcorp (NYSE:CBAN) Is Paying Out A Dividend Of $0.115
Colony Bankcorp, Inc. (NYSE:CBAN) will pay a dividend of $0.115 on the 19th of November. Based on this payment, the dividend yield will be 2.9%, which is fairly typical for the industry.
Colony Bankcorp's Earnings Will Easily Cover The Distributions
We aren't too impressed by dividend yields unless they can be sustained over time.
Having paid out dividends for 9 years, Colony Bankcorp has a good history of paying out a part of its earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Colony Bankcorp's payout ratio of 29% is a good sign for current shareholders as this means that earnings decently cover dividends.
The next 3 years are set to see EPS grow by 63.3%. Analysts estimate the future payout ratio will be 23% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend.
View our latest analysis for Colony Bankcorp
Colony Bankcorp Doesn't Have A Long Payment History
It is great to see that Colony Bankcorp has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. The annual payment during the last 9 years was $0.10 in 2016, and the most recent fiscal year payment was $0.46. This implies that the company grew its distributions at a yearly rate of about 18% 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.
Colony Bankcorp 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. We are encouraged to see that Colony Bankcorp has grown earnings per share at 9.4% 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.
We Really Like Colony Bankcorp's Dividend
Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. Taking this all into consideration, this looks like it could be a good dividend opportunity.
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. Now, if you want to look closer, it would be worth checking out our free research on Colony Bankcorp management tenure, salary, and performance. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.
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