Southside Bancshares, Inc. : SBSI-US: Dividend Analysis : August 17th, 2017 (record date) : By the numbers : September 14, 2017

Our analysis is based on comparing Southside Bancshares, Inc. with the following peers – Cullen/Frost Bankers, Inc., Texas Capital Bancshares, Inc., First Financial Bankshares, Inc., Prosperity Bancshares, Inc.(R), International Bancshares Corporation, Bank of the Ozarks, LegacyTexas Financial Group, Inc., Independent Bank Group, Inc., Apogee Enterprises, Inc. and BOK Financial Corporation (CFR-US, TCBI-US, FFIN-US, PB-US, IBOC-US, OZRK-US, LTXB-US, IBTX-US, APOG-US and BOKF-US).

Southside Bancshares, Inc.’s dividend yield is 3.28 percent and its dividend payout is 52.52 percent. This compares to a peer median dividend yield of 1.77 percent and a payout level of 31.43 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), SBSI-US paid a medium quality dividend, which represents a yield of 3.00% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality, 2 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 1.91x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), SBSI-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.31x), investing cash flow (coverage of -14.66x), issuance cash flow (coverage of 18.20x) and twelve-month prior cash (coverage of 1.56x), for a total dividend coverage of 2.91x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 5.31 3.28 2.57 4.11 2.41 3.28
Dividend Payout (%) 38.57 34.8 77.99 55.09 50.41 52.52

A complete list of metrics and analysis is available on the company page.

Company Profile

Southside Bancshares, Inc. operates as a bank holding company of Southside Bank. The company was founded on August 11, 1982 and is headquartered in Tyler, TX.

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