Assessing the Dividend Sustainability and Growth Prospects of ALPIB
Alpine Banks of Colorado (ALPIB, Financial) recently announced a dividend of $0.20 per share, payable on 2024-01-29, with the ex-dividend date set for 2024-01-19. 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 Alpine Banks of Colorado's dividend performance and assess its sustainability.
What Does Alpine Banks of Colorado Do?
Alpine Banks of Colorado is engaged in providing personal, business, wealth management, mortgage, and electronic banking services. The company offers a range of products including Personal Checking, Personal Loans, Digital Banking, credit cards, debit cards, merchant services, Business Checking, Business Loans, and other services. This diversified portfolio of banking solutions caters to a broad customer base, which is fundamental to the company's revenue streams.
A Glimpse at Alpine Banks of Colorado's Dividend History
Alpine Banks of Colorado has maintained a consistent dividend payment record since 2019, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Alpine Banks of Colorado's Dividend Yield and Growth
As of today, Alpine Banks of Colorado currently has a 12-month trailing dividend yield of 2.78% and a 12-month forward dividend yield of 2.78%. This suggests an expectation of the same dividend payments over the next 12 months. Over the past three years, Alpine Banks of Colorado's annual dividend growth rate was 7.50%.
Based on Alpine Banks of Colorado's dividend yield and five-year growth rate, the 5-year yield on cost of Alpine Banks of Colorado stock as of today is approximately 2.78%.
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, Alpine Banks of Colorado's dividend payout ratio is 0.19.
Alpine Banks of Colorado's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Alpine Banks of Colorado's profitability 2 out of 10 as of 2023-09-30, suggesting the dividend may not be sustainable. The company has reported net profit in 4 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Alpine Banks of Colorado's growth rank of 2 out of 10 suggests that the company has poor growth prospects and thus, the dividend may not be sustainable. However, Alpine Banks of Colorado's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model, with an average annual increase of approximately 6.10%, underperforming approximately 51% 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, Alpine Banks of Colorado's earnings increased by approximately 7.90% per year on average, a rate that underperforms approximately 52.24% of global competitors.
Conclusion: Evaluating Alpine Banks of Colorado's Dividend Prospects
In conclusion, while Alpine Banks of Colorado has demonstrated a stable dividend history and a reasonable payout ratio, its low profitability and growth ranks raise concerns about the long-term sustainability of its dividends. Investors should consider these factors and monitor the company's future earnings reports and growth prospects closely. Value investors seeking high-dividend yield opportunities can explore further using the High Dividend Yield Screener available to GuruFocus Premium users.
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.
