Capital City Bank Group, Inc. (NASDAQ:CCBG) Looks Like A Good Stock, And It’s Going Ex-Dividend Soon
Regular readers will know that we love our dividends at Simply Wall St, which is why it’s exciting to see Capital City Bank Group, Inc. (NASDAQ:CCBG) is about to trade ex-dividend in the next four days. The ex-dividend date occurs one day before the record date which is the day on which shareholders need to be on the company’s books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Meaning, you will need to purchase Capital City Bank Group’s shares before the 8th of September to receive the dividend, which will be paid on the 25th of September.
The company’s next dividend payment will be US$0.20 per share, and in the last 12 months, the company paid a total of US$0.72 per share. Calculating the last year’s worth of payments shows that Capital City Bank Group has a trailing yield of 2.6% on the current share price of $30.88. If you buy this business for its dividend, you should have an idea of whether Capital City Bank Group’s dividend is reliable and sustainable. So we need to investigate whether Capital City Bank Group can afford its dividend, and if the dividend could grow.
Check out our latest analysis for Capital City Bank Group
If a company pays out more in dividends than it earned, then the dividend might become unsustainable – hardly an ideal situation. Capital City Bank Group is paying out just 23% of its profit after tax, which is comfortably low and leaves plenty of breathing room in the case of adverse events.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.
Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. It’s encouraging to see Capital City Bank Group has grown its earnings rapidly, up 37% a year for the past five years.
Many investors will assess a company’s dividend performance by evaluating how much the dividend payments have changed over time. In the last nine years, Capital City Bank Group has lifted its dividend by approximately 29% a year on average. Both per-share earnings and dividends have both been growing rapidly in recent times, which is great to see.
To Sum It Up
Is Capital City Bank Group worth buying for its dividend? Typically, companies that are growing rapidly and paying out a low fraction of earnings are keeping the profits for reinvestment in the business. This is one of the most attractive investment combinations under this analysis, as it can create substantial value for investors over the long run. In summary, Capital City Bank Group appears to have some promise as a dividend stock, and we’d suggest taking a closer look at it.
While it’s tempting to invest in Capital City Bank Group for the dividends alone, you should always be mindful of the risks involved. Every company has risks, and we’ve spotted 2 warning signs for Capital City Bank Group (of which 1 can’t be ignored!) you should know about.
If you’re in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
