NYSE:MTB) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You can purchase shares before the 31st of August in order to receive the dividend, which the company will pay on the 30th of September.” data-reactid=”28″>Readers hoping to buy M&T Bank Corporation (NYSE:MTB) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. You can purchase shares before the 31st of August in order to receive the dividend, which the company will pay on the 30th of September.
M&T Bank’s next dividend payment will be US$1.10 per share, and in the last 12 months, the company paid a total of US$4.40 per share. Calculating the last year’s worth of payments shows that M&T Bank has a trailing yield of 4.2% on the current share price of $105.95. If you buy this business for its dividend, you should have an idea of whether M&T Bank’s dividend is reliable and sustainable. As a result, readers should always check whether M&T Bank has been able to grow its dividends, or if the dividend might be cut.
View our latest analysis for M&T Bank ” data-reactid=”30″> View our latest analysis for M&T Bank
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. That’s why it’s good to see M&T Bank paying out a modest 40% of its earnings.
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.
here to see the company’s payout ratio, plus analyst estimates of its future dividends.” data-reactid=”37″>Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it’s a relief to see M&T Bank earnings per share are up 7.6% per annum over the last five years.
Many investors will assess a company’s dividend performance by evaluating how much the dividend payments have changed over time. M&T Bank has delivered 4.6% dividend growth per year on average over the past 10 years. We’re glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.
From a dividend perspective, should investors buy or avoid M&T Bank? M&T Bank has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. Overall, M&T Bank looks like a promising dividend stock in this analysis, and we think it would be worth investigating further.
1 warning sign we think you should be aware of.” data-reactid=”55″>While it’s tempting to invest in M&T Bank for the dividends alone, you should always be mindful of the risks involved. For example – M&T Bank has 1 warning sign we think you should be aware of.
checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.” data-reactid=”56″>If you’re in the market for dividend stocks, we recommend checking our list of top dividend stocks with a greater than 2% yield and an upcoming dividend.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”57″>This article by Simply Wall St is general in nature. 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.