Yahoo Finance Hancock Whitney Corp's Dividend Analysis
Exploring the Sustainability and Growth of Hancock Whitney Corp's Dividends
Introduction to Hancock Whitney Corp's Upcoming Dividend
Hancock Whitney Corp (NASDAQ:HWC) recently announced a dividend of $0.4 per share, payable on 2024-06-14, with the ex-dividend date set for 2024-06-05. 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 Hancock Whitney Corp's dividend performance and assess its sustainability.
What Does Hancock Whitney Corp Do?
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Hancock Whitney Corp operates bank offices and financial centers. The company offers a range of traditional and online banking services to commercial, small business and retail customers, providing a variety of transaction and savings deposit products, treasury management services, secured and unsecured loan products (including revolving credit facilities), letters of credit and similar financial guarantees. The Bank provides trust and investment management services to retirement plans, corporations and individuals and provides its customers access to investment advisory and brokerage products.
A Glimpse at Hancock Whitney Corp's Dividend History
Hancock Whitney Corp has maintained a consistent dividend payment record since 1987. Dividends are currently distributed on a quarterly basis. Hancock Whitney Corp has increased its dividend each year since 1989. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 35 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Hancock Whitney Corp's Dividend Yield and Growth
As of today, Hancock Whitney Corp currently has a 12-month trailing dividend yield of 2.67% and a 12-month forward dividend yield of 3.52%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Hancock Whitney Corp's annual dividend growth rate was 3.60%. Extended to a five-year horizon, this rate decreased to 2.40% per year. And over the past decade, Hancock Whitney Corp's annual dividends per share growth rate stands at 2.10%. Based on Hancock Whitney Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Hancock Whitney Corp stock as of today is approximately 3.01%.
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 2024-03-31, Hancock Whitney Corp's dividend payout ratio is 0.28. Hancock Whitney Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Hancock Whitney Corp's profitability 5 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Hancock Whitney Corp'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 Hancock Whitney Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Hancock Whitney Corp's revenue has increased by approximately 2.60% per year on average, a rate that underperforms than approximately 70.97% of global competitors.
Conclusion
Considering Hancock Whitney Corp's consistent dividend payments, growth in dividend rates, a reasonable payout ratio, and fair profitability and growth metrics, the company presents a potentially attractive opportunity for dividend investors. However, investors should consider the broader economic and sector-specific challenges that may impact future performance. 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.
This article first appeared on GuruFocus.
