Here’s what we like about SouthState’s ( NYSE:SSB ) upcoming dividend

On November 7, 2024By Littum

SouthState Corporation (NYSE:SSB) is trading ex-dividend for the next four days. The ex-dividend date is usually set to be one banking day before the record date, which is the cut-off date when you must be present on the company’s books as a shareholder to receive the dividend. The ex-dividend date is of consequence because when a share is bought or sold, the trade takes at least two business days to settle. In other words, investors can buy SouthState’s shares before November 8th to be eligible for the dividend, which will be paid on November 15th.

The company’s next dividend payment will be $0.54 per share. stock. Last year, the company distributed a total of $2.16 to shareholders. Based on last year’s payments, SouthState has a trailing yield of 2.2% at the current share price of $97.42. Dividends are an important source of income for many shareholders, but the health of the company is critical to sustaining those dividends. So we need to check if the dividend payments are covered and if the earnings are growing.

See our latest analysis for SouthState

Dividends are typically paid out of the company’s income, so if a company pays out more than it earned, its dividend usually has a higher risk of being cut. SouthState paid out a comfortable 32% of its profits last year.

In general, the lower a company’s payout ratio, the more resilient its dividend usually is.

Click here to see the company’s payout ratio plus analyst estimates for its future dividend.

Companies with strong growth prospects are usually the best dividend payers because it’s easier to grow dividends when earnings per share increase. share improves. If earnings fall and the company is forced to cut dividends, investors may see the value of their investment go up in smoke. That’s why it’s a relief to see SouthState’s earnings per share. share has increased by 5.9% per year over the past five years.

Many investors will evaluate a company’s dividend performance by assessing how much dividend payments have changed over time. SouthState has delivered 11% annual dividend growth on average over the past 10 years. We are pleased to see the dividend rise alongside earnings over a number of years, which may be a sign that the company intends to share the growth with shareholders.

Is SouthState worth buying for its dividend? It has grown its earnings per share somewhat in recent years, although it is reinvesting more than half of its earnings into the business, which could indicate that there are some growth projects that have yet to come to fruition. Overall, SouthState looks like a promising dividend stock in this analysis, and we think it would be worth a closer look.