Advertisement
Singapore markets close in 2 hours 12 minutes
  • Straits Times Index

    3,294.03
    -9.97 (-0.30%)
     
  • Nikkei

    38,633.02
    +62.26 (+0.16%)
     
  • Hang Seng

    18,307.29
    -123.10 (-0.67%)
     
  • FTSE 100

    8,205.11
    +13.82 (+0.17%)
     
  • Bitcoin USD

    65,462.32
    -98.89 (-0.15%)
     
  • CMC Crypto 200

    1,395.18
    +12.52 (+0.91%)
     
  • S&P 500

    5,487.03
    +13.80 (+0.25%)
     
  • Dow

    38,834.86
    +56.76 (+0.15%)
     
  • Nasdaq

    17,862.23
    +5.21 (+0.03%)
     
  • Gold

    2,357.20
    +10.30 (+0.44%)
     
  • Crude Oil

    81.42
    -0.15 (-0.18%)
     
  • 10-Yr Bond

    4.2170
    0.0000 (0.00%)
     
  • FTSE Bursa Malaysia

    1,592.63
    -7.16 (-0.45%)
     
  • Jakarta Composite Index

    6,790.65
    +63.73 (+0.95%)
     
  • PSE Index

    6,316.56
    -49.47 (-0.78%)
     

First Bancshares (NASDAQ:FBMS) Has Announced A Dividend Of $0.25

The First Bancshares, Inc.'s (NASDAQ:FBMS) investors are due to receive a payment of $0.25 per share on 23rd of May. This takes the dividend yield to 4.2%, which shareholders will be pleased with.

See our latest analysis for First Bancshares

First Bancshares' Dividend Forecasted To Be Well Covered By Earnings

If the payments aren't sustainable, a high yield for a few years won't matter that much.

Having distributed dividends for at least 10 years, First Bancshares has a long history of paying out a part of its earnings to shareholders. Taking data from its last earnings report, calculating for the company's payout ratio shows 38%, which means that First Bancshares would be able to pay its last dividend without pressure on the balance sheet.

ADVERTISEMENT

Over the next year, EPS is forecast to expand by 3.1%. If the dividend continues on this path, the future payout ratio could be 45% by next year, which we think can be pretty sustainable going forward.

historic-dividend
historic-dividend

First Bancshares Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2014, the annual payment back then was $0.15, compared to the most recent full-year payment of $1.00. This works out to be a compound annual growth rate (CAGR) of approximately 21% a year over that time. It is good to see that there has been strong dividend growth, and that there haven't been any cuts for a long time.

We Could See First Bancshares' Dividend Growing

Investors could be attracted to the stock based on the quality of its payment history. First Bancshares has seen EPS rising for the last five years, at 7.3% per annum. First Bancshares definitely has the potential to grow its dividend in the future with earnings on an uptrend and a low payout ratio.

We Really Like First Bancshares' Dividend

Overall, we think this could be an attractive income stock, and it is only getting better by paying a higher dividend this year. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 4 analysts we track are forecasting for First Bancshares for free with public analyst estimates for the company. Is First 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) simplywallst.com.

This 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.