Atlantic Union Bankshares Corporation (NYSE:AUB) is approaching its ex-dividend date, a significant event preceding the record date which determines shareholders eligible for dividends. Investors who enter after November 9th will not be eligible for the forthcoming dividend, set to be disbursed on November 24th.
The upcoming dividend is set at US$0.32 per share, culminating in an annual aggregate distribution of US$1.20 per share. Given the corporation's stock price of $31.99, the trailing yield stands at approximately 3.8%. This highlights the importance of dividends as a major income source for shareholders and underlines the necessity of robust corporate health to sustain them.
The sustainability of dividend payments is closely tied to corporate growth. Circumstances where dividends surpass earnings could endanger the dividend's stability. Yet, Atlantic Union Bankshares displays a conservative payout ratio, distributing only 44% of its profit as dividends. This indicates a comfortably manageable dividend and provides a safety net for the dividend during business downturns.
It's worth noting that dividends form a key part of investment returns and can significantly contribute to an investor's overall portfolio performance over the long term. As such, prospective investors are advised to consider the ex-dividend date when making investment decisions.
InvestingPro Insights
As we delve deeper into Atlantic Union Bankshares Corporation's financial health, InvestingPro's real-time data paints a promising picture. With a Price/Earnings (P/E) ratio of 10.0 and a Price/Book ratio of 0.88 as of Q3 2023, the company appears reasonably valued. The company's revenue growth has been steady, with a 2.45% increase in Q3 2023, and a dividend yield of 4.0% in August 2023, which is slightly higher than the trailing yield mentioned in the article.
InvestingPro Tips further underscore the company's strength. AUB has a high earnings quality, with free cash flow exceeding net income, and has raised its dividend for 13 consecutive years. The company has also seen a significant return over the last week. Furthermore, analysts predict that AUB will stay profitable this year, adding to the company's attractiveness.
These insights are just a glimpse of the comprehensive data and tips available on InvestingPro. For more in-depth analysis and tips, consider exploring InvestingPro's suite of tools and resources.
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