Our analysis is based on comparing Trustmark Corp. with the following peers – BancorpSouth Bank, Renasant Corporation, Regions Financial Corporation, Pinnacle Financial Partners, Inc., SunTrust Banks, Inc., First Horizon National Corporation, BB&T Corporation, Peoples Financial Corporation, SP Plus Corporation and Citizens Holding Company (BXS-US, RNST-US, RF-US, PNFP-US, STI-US, FHN-US, BBT-US, PFBX-US, SP-US and CIZN-US).
Trustmark Corp.’s dividend yield is 2.71 percent and its dividend payout is 52.57 percent. This compares to a peer median dividend yield of 1.94 percent and a payout level of 32.04 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 Quality Overview
- Over the last twelve months (prior to September 30, 2017), TRMK-US paid a low quality dividend, which represents a yield of 2.71% 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 3 were medium quality and 2 were low quality.
- The ending cash balance, with a dividend coverage of 5.58x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to September 30, 2017), TRMK-US paid a low 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 2.77x), investing cash flow (coverage of -10.11x), issuance cash flow (coverage of 7.80x) and twelve-month prior cash (coverage of 6.12x), for a total dividend coverage of 6.58x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||4.12||3.44||3.77||4.02||2.6||2.71|
|Dividend Payout (%)||50.83||52.57||50.27||53.8||57.5||52.57|
A complete list of metrics and analysis is available on the company page.
Trustmark Corp. is a bank holding company, which engages in the provision of banking, wealth management and insurance solutions through its subsidiaries, including Trustmark National Bank, Trustmark Investment Advisors, Inc. and Fisher Brown Bottrell Insurance, Inc. It operates through the following business segments: General Banking, Wealth Management, and Insurance Division. The General Banking Division segment offers traditional banking products and services, including commercial and consumer banking services, such as checking accounts, savings programs, overdraft facilities, commercial, installment and real estate loans, home equity loans and lines of credit and drive-in and night deposit services, and safe deposit facilities. The Wealth Management Division segment gives integrating financial services and traditional banking products and services, such as private banking, money management, full-service brokerage, financial planning, personal and institutional trust, and retirement services. The Insurance Division segment supply retail insurance products, including commercial risk management products, bonding, group benefits, and personal lines coverage services. The company was founded in 1968 and is headquartered in Jackson, MS.
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