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DailyBubble News

Southern Missouri Bancorp (NASDAQ:SMBC) Is Paying Out A Dividend Of $0.21

Southern Missouri Bancorp, Inc. (NASDAQ:SMBC) has recently announced that it will be paying a dividend of $0.21 per share on the 31st of May. The dividend yield for this payment stands at 2.0%, which is slightly lower compared to other companies in the industry.

It is important to note that while a higher yield would be preferable, it is crucial to ensure that the level of dividend payment is sustainable. Southern Missouri Bancorp has a solid track record of paying out dividends, with a minimum of 10 years of consistent payouts. The latest earnings report shows a payout ratio of 18%, indicating that the company can comfortably cover its dividend payments.

Looking ahead, earnings per share are expected to decrease by 0.5% over the next year. However, based on recent trends, it is estimated that the future payout ratio could be 20%, allowing for ample room for the company to continue growing its business in the future.

Southern Missouri Bancorp has a strong history of dividend growth, with annual payments increasing at a rate of about 10% since 2014. This consistent growth, combined with the company’s impressive EPS growth of 9.1% per year over the past five years, suggests that there is potential for further dividend growth in the future.

Overall, Southern Missouri Bancorp appears to be a promising dividend stock. The company’s consistent dividend policy, solid earnings coverage, and strong cash generation indicate that it may even raise its dividend payments in the future. While earnings are expected to decrease in the next year, this is not likely to impact the long-term outlook for the company.

It is important to consider all factors before investing in a stock, including its dividend policy. Investors may want to be aware of potential warning signs, such as those identified for Southern Missouri Bancorp, and conduct thorough research before making any investment decisions.

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