Hancock Whitney Corporation (NASDAQ:HWC) has announced that it will pay a dividend of $0.27 per share on the 15th of December. This payment means the dividend yield will be 2.0%, which is below the average for the industry.

View our latest analysis for Hancock Whitney

Hancock Whitney's Payment Expected To Have Solid Earnings Coverage

If it is predictable over a long period, even low dividend yields can be attractive.

Hancock Whitney has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Using data from its latest earnings report, Hancock Whitney's payout ratio sits at 18%, an extremely comfortable number that shows that it can pay its dividend.

Looking forward, EPS is forecast to rise by 7.3% over the next 3 years. The future payout ratio could be 19% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Hancock Whitney Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2012, the dividend has gone from $0.96 total annually to $1.08. This works out to be a compound annual growth rate (CAGR) of approximately 1.2% a year over that time. While the consistency in the dividend payments is impressive, we think the relatively slow rate of growth is less attractive.

The Dividend Looks Likely To Grow

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Hancock Whitney has impressed us by growing EPS at 19% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Hancock Whitney Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Hancock Whitney might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've picked out 1 warning sign for Hancock Whitney that investors should know about before committing capital to this stock. Is Hancock Whitney not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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