First Busey Corp's Dividend Analysis
Understanding the Dividend Performance, Growth and Sustainability of First Busey Corp
First Busey Corp (NASDAQ:BUSE) recently announced a dividend of $0.24 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-19. As investors anticipate this upcoming payment, it's crucial to examine the company's dividend history, yield, and growth rates. Using data from GuruFocus, this article delves into First Busey Corp's dividend performance and assesses its sustainability.
What Does First Busey Corp Do?
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First Busey Corporation is a financial holding company, providing retail and commercial banking services, remittance processing, and financial products and services. It operates banking centers in Illinois, Missouri, Florida, and Indiana. The company's operations are divided into three segments: Banking, FirsTech, and Wealth Management, with the banking segment generating the majority of its revenue.
A Glimpse at First Busey Corp's Dividend History
First Busey Corp has upheld a consistent dividend payment record since 1989, currently distributing dividends on a quarterly basis. The company has increased its dividend each year since 2010, earning it the status of a dividend achiever. This title is awarded to companies that have consistently increased their dividend each year for at least the past 13 years.
Breaking Down First Busey Corp's Dividend Yield and Growth
First Busey Corp currently has a 12-month trailing dividend yield of 4.77% and a 12-month forward dividend yield of 4.82%. This indicates an expectation of increased dividend payments over the next 12 months.
Over the past three years, First Busey Corp's annual dividend growth rate was 3.10%. This rate increased to 5.00% per year over a five-year horizon. Over the past decade, First Busey Corp's annual dividends per share growth rate stands at 7.50%.
Considering First Busey Corp's dividend yield and five-year growth rate, the 5-year yield on cost of First Busey Corp stock as of today is approximately 6.09%.
The Sustainability Question: Payout Ratio and Profitability
The sustainability of a dividend can be gauged by evaluating the company's payout ratio. The dividend payout ratio reveals the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, ensuring funds for future growth and unexpected downturns. As of 2023-06-30, First Busey Corp's dividend payout ratio is 0.39.