South Plains Financial Inc's Dividend Analysis
Understanding SPFI's Dividend Dynamics
South Plains Financial Inc (NASDAQ:SPFI) recently announced a dividend of $0.13 per share, payable on 2024-02-12, with the ex-dividend date set for 2024-01-26. 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 South Plains Financial Inc's dividend performance and assess its sustainability.
What Does South Plains Financial Inc Do?
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South Plains Financial Inc operates as a bank holding company. The company provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals. The principal business activities include commercial and retail banking, along with insurance, investment, trust, and mortgage services. The company has two reportable segments: banking and insurance.
A Glimpse at South Plains Financial Inc's Dividend History
South Plains Financial Inc has maintained a consistent dividend payment record since 2019. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down South Plains Financial Inc's Dividend Yield and Growth
As of today, South Plains Financial Inc currently has a 12-month trailing dividend yield of 1.88% and a 12-month forward dividend yield of 1.88%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, South Plains Financial Inc's annual dividend growth rate was 97.20%. Based on South Plains Financial Inc's dividend yield and five-year growth rate, the 5-year yield on cost of South Plains Financial Inc stock as of today is approximately 1.88%.
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, South Plains Financial Inc's dividend payout ratio is 0.14. South Plains Financial Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks South Plains Financial Inc's profitability 4 out of 10 as of 2023-09-30, suggesting the dividend may not be sustainable. The company has reported net profit in 6 years out of the past 10 years.