Enterprise Financial Services Corp: A Promising Dividend Stock for Investors
Are you an investor looking for a promising dividend stock? Enterprise Financial Services Corp (NASDAQ:EFSC) might be the answer. With its sustainable dividend payments and impressive earnings growth, this company is worth investigating further. Find out why Enterprise Financial Services Corp is catching the attention of dividend sleuths and how it could potentially grow your wealth.
Understanding Ex-Dividend Date and Record Date
Before delving into the details of Enterprise Financial Services Corp’s dividend, it’s important to understand the concept of ex-dividend date and record date. The ex-dividend date is the date on which a stock no longer carries the right to receive the upcoming dividend payment. It occurs one day before the record date, which is the date on which shareholders must be on the company’s books to be eligible for the dividend.
When buying or selling a stock, the trade takes at least two business days to settle. Therefore, if you purchase Enterprise Financial Services’ shares on or after the 14th of December, you won’t be eligible to receive the dividend, which is paid on the 29th of December.
Sustainable Dividend Payments and Conservative Payout Ratio
Dividends are typically paid from a company’s earnings. If a company pays out more in dividends than it earns in profit, the dividend may not be sustainable. However, Enterprise Financial Services Corp has a low and conservative payout ratio of just 18% of its income after tax. This indicates that the company is not overextending itself when it comes to dividend payments.
Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. A lower payout ratio gives the business more flexibility and room to maneuver before potentially needing to cut the dividend.
By maintaining a conservative payout ratio, Enterprise Financial Services Corp is able to allocate a significant portion of its earnings towards reinvestment in the business, which can lead to long-term value creation for investors.
Impressive Earnings Growth and Dividend Increase
Companies with consistently growing earnings per share often make excellent dividend stocks. Enterprise Financial Services Corp has demonstrated impressive earnings growth, with a 21% annual increase over the past five years. This indicates the company’s ability to generate sustainable profits and potentially continue increasing its dividend payments.
In addition to its earnings growth, Enterprise Financial Services Corp has also consistently increased its dividend over the past 10 years, with an average annual increase of 17%. This shows the company’s commitment to rewarding shareholders and its confidence in its future prospects.
Investigating Enterprise Financial Services Corp as a Dividend Stock
Considering the sustainable dividend payments, conservative payout ratio, impressive earnings growth, and consistent dividend increases, Enterprise Financial Services Corp appears to be a promising dividend stock. Investors who prioritize dividends and long-term growth may find this company worth investigating further.
However, it’s important to conduct thorough research and analysis before making any investment decisions. Factors such as market conditions, industry trends, and company-specific risks should be taken into consideration. It’s always wise to consult with a financial advisor or do your own due diligence before investing in any stock.
In conclusion, Enterprise Financial Services Corp presents an attractive opportunity for dividend-seeking investors. With its sustainable dividend payments and growth potential, it’s a stock that deserves further exploration.