Wayne Savings Bancshares Inc's Dividend Analysis
Understanding the Dividend Dynamics of Wayne Savings Bancshares Inc
Wayne Savings Bancshares Inc (WAYN) recently announced a dividend of $0.23 per share, payable on 2024-01-24, with the ex-dividend date set for 2024-01-09. 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 Wayne Savings Bancshares Inc's dividend performance and assess its sustainability.
What Does Wayne Savings Bancshares Inc Do?
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Wayne Savings Bancshares Inc is a bank holding company. It offers services such as checking accounts, savings, business loans, online banking, mobile banking, and overdraft protection among others. The bank generates its revenue in the form of interest income.
A Glimpse at Wayne Savings Bancshares Inc's Dividend History
Wayne Savings Bancshares Inc has maintained a consistent dividend payment record since 1993. Dividends are currently distributed on a quarterly basis.
Wayne Savings Bancshares Inc has increased its dividend each year since 2010. The stock is thus listed as a dividend achiever, an honor that is given to companies that have increased their dividend each year for at least the past 14 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Wayne Savings Bancshares Inc's Dividend Yield and Growth
As of today, Wayne Savings Bancshares Inc currently has a 12-month trailing dividend yield of 3.83% and a 12-month forward dividend yield of 3.83%. This suggests an expectation of same dividend payments over the next 12 months.
Over the past three years, Wayne Savings Bancshares Inc's annual dividend growth rate was 7.70%. Extended to a five-year horizon, this rate increased to 20.00% per year. And over the past decade, Wayne Savings Bancshares Inc's annual dividends per share growth rate stands at an impressive 14.10%.
Based on Wayne Savings Bancshares Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Wayne Savings Bancshares Inc stock as of today is approximately 9.53%.
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 2023-09-30, Wayne Savings Bancshares Inc's dividend payout ratio is 0.25.
Wayne Savings Bancshares Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Wayne Savings Bancshares Inc's profitability 6 out of 10 as of 2023-09-30, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Wayne Savings Bancshares Inc's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Wayne Savings Bancshares Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Wayne Savings Bancshares Inc's revenue has increased by approximately 15.80% per year on average, a rate that outperforms approximately 84.39% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Wayne Savings Bancshares Inc's earnings increased by approximately 17.40% per year on average, a rate that outperforms approximately 71.84% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 24.50%, which outperforms approximately 87.84% of global competitors.
Next Steps
In conclusion, Wayne Savings Bancshares Inc's consistent dividend payments, robust dividend growth rate, prudent payout ratio, and solid profitability and growth metrics paint a favorable picture for income-seeking investors. With a track record of increasing dividends and a strategy that supports financial health and expansion, the company appears well-positioned to maintain its dividend achiever status. Investors contemplating a stake in Wayne Savings Bancshares Inc should consider these factors in their overall assessment. Will Wayne Savings Bancshares Inc continue its dividend growth streak in the coming years? This remains an important question for potential investors. For those interested in exploring further, 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.
