ServisFirst Bancshares (NYSE:SFBS), the Alabama-based banking company, has declared a dividend of $0.28 per share, payable on October 10, 2023. The announcement came on Tuesday, just days before the company is set to go ex-dividend after September 29.
The dividend declaration holds significance for investors focused on income generation. With the current share price at $50.17, this new distribution compares to last year's $1.12 per share yield, which represented a 2.2% return.
In terms of sustainability, ServisFirst Bancshares' low payout ratio is noteworthy. The company's dividend is comfortably backed by just 24% of its after-tax profit, suggesting a sustainable dividend policy moving forward. This lower payout ratio is seen as a positive indicator for the company's ability to maintain its dividend payments in the foreseeable future.
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