Latest news with #CommerceBancshares'
Yahoo
28-04-2025
- Business
- Yahoo
Commerce Bancshares' (NASDAQ:CBSH) Dividend Will Be $0.275
The board of Commerce Bancshares, Inc. (NASDAQ:CBSH) has announced that it will pay a dividend on the 24th of June, with investors receiving $0.275 per share. This payment means the dividend yield will be 1.8%, which is below the average for the industry. We've discovered 1 warning sign about Commerce Bancshares. View them for free. It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Commerce Bancshares has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Commerce Bancshares' payout ratio of 26% is a good sign as this means that earnings decently cover dividends. Over the next 3 years, EPS is forecast to expand by 10.7%. The future payout ratio could be 28% over that time period, according to analyst estimates, which is a good look for the future of the dividend. Check out our latest analysis for Commerce Bancshares Even over a long history of paying dividends, the company's distributions have been remarkably stable. Since 2015, the dividend has gone from $0.526 total annually to $1.10. This works out to be a compound annual growth rate (CAGR) of approximately 7.7% a year over that time. Dividends have grown at a reasonable rate over this period, and without any major cuts in the payment over time, we think this is an attractive combination as it provides a nice boost to shareholder returns. Investors could be attracted to the stock based on the quality of its payment history. It's encouraging to see that Commerce Bancshares has been growing its earnings per share at 9.9% a year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting. In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Commerce Bancshares that you should be aware of before investing. Is Commerce Bancshares not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Commerce Bancshares (NASDAQ:CBSH) Will Pay A Larger Dividend Than Last Year At $0.275
Commerce Bancshares, Inc.'s (NASDAQ:CBSH) dividend will be increasing from last year's payment of the same period to $0.275 on 25th of March. Even though the dividend went up, the yield is still quite low at only 1.5%. See our latest analysis for Commerce Bancshares While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible. Commerce Bancshares has a long history of paying out dividends, with its current track record at a minimum of 10 years. Based on Commerce Bancshares' last earnings report, the payout ratio is at a decent 27%, meaning that the company is able to pay out its dividend with a bit of room to spare. Looking forward, EPS is forecast to rise by 27.8% over the next 3 years. Analysts forecast the future payout ratio could be 31% over the same time horizon, which is a number we think the company can maintain. Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.526 in 2015, and the most recent fiscal year payment was $1.03. This implies that the company grew its distributions at a yearly rate of about 6.9% over that duration. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. 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 Commerce Bancshares has grown earnings per share at 6.9% per year over the past five years. Commerce Bancshares definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. Taking the debate a bit further, we've identified 1 warning sign for Commerce Bancshares that investors need to be conscious of moving forward. Is Commerce Bancshares not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
