Byline Bancorp, Inc. (NYSE: BY) to Ex-Dividend Soon
Byline Bancorp, Inc. The stock (NYSE: BY) is about to trade ex-dividend in 4 days. Typically, the ex-dividend date is one business day prior to the record date which is the date a company determines which shareholders are eligible to receive a dividend. The ex-dividend date is important because any share transaction must have been settled before the registration date to be eligible for a dividend. Thus, you can buy the shares of Byline Bancorp before November 8 in order to receive the dividend that the company will pay on November 23.
The company’s next dividend payment will be US $ 0.09 per share, and over the past 12 months, the company has paid a total of US $ 0.36 per share. Looking at the last 12 months of distributions, Byline Bancorp has a sliding return of around 1.4% on its current price of $ 26.2. We love to see companies pay a dividend, but it’s also important to make sure that laying the golden eggs doesn’t kill our goose that lays the golden eggs! Accordingly, readers should always check whether Byline Bancorp has been able to increase its dividends or whether the dividend could be reduced.
Check out our latest review for Byline Bancorp
Dividends are usually paid out of the company’s profits, so if a company pays more than it earned, its dividend is usually at risk of being reduced. Byline Bancorp pays only 10% of its profit after tax, which is comfortably low and leaves a lot of leeway in the event of adverse events.
Companies that pay less dividends than they earn profits generally have more sustainable dividends. The lower the payout ratio, the more leeway the company has before being forced to reduce the dividend.
Click here to view the company’s payout ratio, as well as analysts’ estimates of its future dividends.
Have profits and dividends increased?
Companies with declining profits are tricky from a dividend standpoint. If business goes into recession and the dividend is reduced, the company could experience a sharp drop in value. Readers will then understand why we are concerned that Byline Bancorp’s earnings per share have fallen 13% per year over the past five years. When earnings per share decrease, the maximum amount of dividends that can be paid also decreases.
Another key way to measure a company’s dividend outlook is to measure its historical rate of dividend growth. Over the past two years Byline Bancorp has increased its dividend by around 73% per year on average.
The bottom line
Does Byline Bancorp have what it takes to maintain its dividend payments? Byline Bancorp’s earnings per share have been declining over the past five years, although it has the cushion of a low payout ratio, which suggests that a dividend cut is relatively unlikely. We are not convinced of the merits of the company and believe that there could be better opportunities there.
If you want to learn more about Byline Bancorp, it helps to know the risks this business faces. For example, we found 3 warning signs for Byline Bancorp (1 is a little worrying!) That deserve your attention before investing in stocks.
A common investment mistake is to buy the first interesting stock you see. Here you will find a list of promising dividend paying stocks with a yield above 2% and an upcoming dividend.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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