Understanding the Dividend Prospects of Glacier Bancorp Inc
Glacier Bancorp Inc (GBCI, Financial) recently announced a dividend of $0.33 per share, payable on 2024-04-18, with the ex-dividend date set for 2024-04-08. 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 Glacier Bancorp Inc's dividend performance and assess its sustainability.
What Does Glacier Bancorp Inc Do?
Glacier Bancorp Inc is a regional bank holding company providing commercial banking services to scores of communities through its wholly-owned bank subsidiary, Glacier Bank. The bank operates a multitude of banking offices in Montana, Idaho, Colorado, Utah, Washington, and Wyoming. The bank's wide range of products and services include deposit, loans, and mortgage origination services, among others. The bank primarily serves individuals, small- to medium-sized businesses, community organizations, and public entities. Glacier's strategy emphasizes both internal growth and growth through selective acquisitions. A majority of the bank's loan portfolio is in commercial real estate, while a majority of its net revenue is net interest income.
A Glimpse at Glacier Bancorp Inc's Dividend History
Glacier Bancorp Inc has maintained a consistent dividend payment record since 1985. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Glacier Bancorp Inc's Dividend Yield and Growth
As of today, Glacier Bancorp Inc currently has a 12-month trailing dividend yield of 3.45% and a 12-month forward dividend yield of 3.45%. This suggests an expectation of the same dividend payments over the next 12 months.
Over the past three years, Glacier Bancorp Inc's annual dividend growth rate was 3.80%. Extended to a five-year horizon, this rate increased to 6.80% per year. And over the past decade, Glacier Bancorp Inc's annual dividends per share growth rate stands at 9.20%.
Based on Glacier Bancorp Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Glacier Bancorp Inc stock as of today is approximately 4.79%.
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 2023-12-31, Glacier Bancorp Inc's dividend payout ratio is 0.65.
Glacier Bancorp Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Glacier Bancorp Inc's profitability 5 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported positive net income for each year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Glacier Bancorp Inc's growth rank of 5 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Glacier Bancorp Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Glacier Bancorp Inc's revenue has increased by approximately -4.00% per year on average, a rate that underperforms than approximately 87.16% 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, Glacier Bancorp Inc's earnings increased by approximately -10.40% per year on average, a rate that underperforms than approximately 87.51% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 0.40%, which underperforms than approximately 77.34% of global competitors.
Next Steps
In conclusion, Glacier Bancorp Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics provide a comprehensive picture for investors. While the dividend history and yield are attractive, the company's growth metrics pose questions about its future dividend sustainability. Investors should consider these factors when evaluating Glacier Bancorp Inc as a potential investment for income. For those seeking to expand their portfolios with dividend-paying stocks, GuruFocus Premium users can screen for high-dividend yield 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.
