[ad_1]
board of directors first horizon corporation (NYSE:FHN) announced that it will pay a dividend on April 1, with investors receiving $0.15 per share. Based on this payment, the company’s stock has a dividend yield of 4.0%, an attractive boost to shareholder returns.
Check out our latest analysis for First Horizon
First Horizon’s payout is expected to cover solid revenue
The dividend yield is good, but it doesn’t really matter if you can’t keep up the payments.
First Horizon has been paying dividends for at least 10 years and has a long history of paying out a portion of its profits to shareholders. Based on First Horizon’s last earnings report, the payout ratio is a respectable 38%, meaning the company has some leeway in paying its dividend.
EPS is expected to grow by 21.2% over the next three years. Analysts predict that the future payout ratio could be 33% over the same period, and we think this number can be maintained.
First Horizon has a proven track record
The company has a consistent track record of paying dividends with little volatility. Since 2014, dividends have totaled $0.20 to $0.60 per year. This means that the company has grown its distribution at approximately 12% per year over that period. It’s good to see that the dividend has been growing significantly and hasn’t been cut for a long time.
Dividend increases may be difficult to achieve
Investors in the company will be happy to receive dividend income for some time to come. Things may not be as good as they seem on the surface, so don’t jump to conclusions. Unfortunately, First Horizon’s earnings per share have been roughly flat over the past five years, meaning the dividend may not increase each year.
Thoughts on First Horizon’s dividends
Overall, a stable dividend is a good thing, and we think First Horizon has the ability to continue this into the future. While payments look sustainable for now, earnings are shrinking, which could put pressure on the dividend in the future. The payout isn’t great, but it can be a decent addition to your dividend portfolio.
Companies with stable dividend policies are likely to enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors that readers should be aware of before pouring capital into stocks. For example, we chose 2 warning signs for First Horizon Investors should consider this.Looking for more high-yield dividend ideas? Try ours A group of people with strong dividends.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
[ad_2]
Source link
