Investigating Heartland Financial USA Inc's dividend sustainability and growth
Heartland Financial USA Inc (NASDAQ:HTLF) recently announced a dividend of $0.3 per share, payable on February 27, 2024, with an ex-dividend date of February 9, 2024. The company's dividend history, yield, and growth rate are also in focus as investors look forward to future payouts. Let's examine Heartland Financial USA Inc's dividend history and assess its sustainability using data from GuruFocus.
What does Heartland Financial USA Inc do?
Heartland Financial USA Inc is a multibank holding company that provides a wide range of commercial, small business and consumer banking services to businesses and individuals, including the public sector and nonprofit organizations. We also offer traditional and non-traditional service channels such as online banking, mobile/remote banking, and telephone banking. The company's business areas are commercial banking, agricultural lending, small business banking, residential real estate mortgage lending, consumer banking, wealth management and retirement plan services.
A glimpse of Heartland Financial USA Inc's dividend history
Heartland Financial USA Inc has maintained a consistent dividend payment record since 1998. Dividends are currently distributed on a quarterly basis. Heartland Financial USA Inc has increased its dividend every year since 1998. As such, the stock is listed as a Dividend Aristocrat, an honor bestowed on companies that have increased their dividends every year for at least the past 26 years. Below is a graph showing annual dividends per share to track historical trends.
Analyzing Heartland Financial USA Inc's dividend yield and growth
As of today, Heartland Financial USA Inc's trailing 12-month dividend yield is 3.61% and its trailing 12-month dividend yield is 3.61%. This suggests that the same dividend payments are expected over the next 12 months.
Over the past three years, Heartland Financial USA Inc's annual dividend growth rate was 17.00%. When extended to a five-year period, this rate increased to 20.20% per year. Over the past 10 years, Heartland Financial USA Inc's annual dividend growth rate per share has been an impressive 11.50%.
Based on Heartland Financial USA Inc's dividend yield and 5-year growth rate, Heartland Financial USA Inc stock has a 5-year cost yield of approximately 9.06% as of today.
Questions about sustainability: Dividend payout ratio and profitability
To assess dividend sustainability, you need to evaluate a company's payout ratio. Dividend payout ratio helps determine the proportion of a company's profits that it distributes as dividends. A low ratio indicates that the company is retaining a significant portion of its earnings, thereby ensuring that it has funds for future growth or unexpected economic downturns. As of December 31, 2023, Heartland Financial USA Inc's dividend payout ratio is 0.27.
Heartland Financial USA Inc's Profitability Rank helps you understand the company's profitability compared to its peers. GuruFocus ranks Heartland Financial USA Inc's profitability at 6 out of 10 as of December 31, 2023, suggesting fair profitability. The company has reported positive net income every year for the past 10 years, further cementing its strong profitability.
Growth indicators: future outlook
To ensure dividend sustainability, companies must have solid growth metrics. Heartland Financial USA Inc's Growth Rank of 6 out of 10 suggests that the company has fair growth prospects.
Earnings are the lifeblood of any company, and Heartland Financial USA Inc.'s earnings per share, combined with its three-year earnings growth rate, point to a strong earnings model. Heartland Financial USA Inc's revenue grows at an average annual rate of around 2.60%, which is lower than around 73.61% of its global competitors.
The company's three-year EPS growth rate indicates its ability to grow earnings, which is a key factor in maintaining a dividend over the long term. Over the past three years, Heartland Financial USA Inc's profits have grown by an average of about 8.40% per year, which is lower than about 51.33% of its global competitors.
Finally, the company’s 5-year EBITDA Growth rate is 11.80%, which is lower than that of its global competitors at around 38.28%.
next step
In conclusion, Heartland Financial USA Inc's stable dividend payments and impressive growth rate over the years, combined with its solid payout ratio and fair profitability, suggest a solid dividend outlook. However, given the mixed performance on growth metrics, investors should keep an eye on whether the company can sustain dividend increases on the back of its earnings and earnings performance. For those looking to expand their portfolio with high-dividend stocks, Heartland Financial USA, Inc. presents a case worth considering, keeping in mind the broader financial picture and the company's strategic position within it. . Will Heartland Financial USA, Inc. continue to maintain its Dividend Aristocrat status? This remains an important question for investors to ponder when assessing the company's fundamentals and future prospects.
GuruFocus Premium users can screen for high dividend yield stocks using the High Dividend Yield Screener.
This article created by GuruFocus is intended to provide general insight and is not intended as financial advice. Our commentary is based on historical data and analyst forecasts using an unbiased methodology and is not intended to serve as specific investment guidance. It does not constitute a recommendation to buy or sell stocks, and does not take into account your individual investment objectives or financial situation. Our objective is to provide fundamental data-driven analysis over time. Please note that our analysis may not incorporate the latest announcements or qualitative information from price-sensitive companies. GuruFocus has no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
