Origin Bancorp (NYSE:OBK), Inc. has announced a dividend payout of $0.15 per share, set to be distributed to its shareholders on November 30th. The yield, while below the industry average, stands at 2.0%, reflecting the company's stable yet conservative approach towards returns.
The bank's payout ratio, a key indicator of the sustainability of its dividends, currently sits at 18%. Projections suggest this figure is set to rise to 21% next year, suggesting a steady increase in the portion of earnings allocated to shareholders.
Origin Bancorp has maintained a consistent dividend history over the past five years. The robust compound annual growth rate (CAGR) of 36% since 2018 demonstrates the firm's commitment to steadily increase shareholder returns. The dividend per share has grown from $0.13 in 2018 to the recent $0.60, showcasing a significant increase in returns over time.
In addition to its robust dividend history, Origin Bancorp also boasts an 11% per annum earnings per share (EPS) growth rate. This suggests promising prospects for future dividend growth and further solidifies the bank's position as a stable investment with potential for substantial growth.
InvestingPro Insights
According to the InvestingPro data, Origin Bancorp (OBK) has exhibited a high earnings quality, with free cash flow exceeding net income. The company has also demonstrated accelerating revenue growth, with a 23.77% increase over the last twelve months as of Q3 2023. The company's P/E Ratio stands at 9.49, suggesting that the stock could be undervalued.
InvestingPro Tips highlight the bank's strong earnings, which should allow management to continue dividend payments, in line with the article's focus. Notably, OBK has raised its dividend for 6 consecutive years. Furthermore, 3 analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook for the company's future performance.
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