South Plains Financial (NASDAQ:SPFI), Inc., is poised to trade ex-dividend on Friday, October 27th. Shareholders must own the shares before this date in order to receive the forthcoming dividend payment of $0.13 per share, which is scheduled for Monday, November 13th. The firm's trailing yield stands at 2.1%, derived from a yearly dividend distribution of $0.52 per share and a current share price of $25.
InvestingPro data reveals that the company has a market cap of 422.84M USD and a P/E ratio of 6.4, which indicates that it's trading at a low earnings multiple. This is in line with one of the InvestingPro Tips that suggests the company is trading at a low P/E ratio relative to near-term earnings growth.
Dividends are typically funded by company profits and can be sustainable and grow if they are adequately covered by earnings. South Plains Financial has been cautious in its approach, maintaining a payout ratio of 13% of its profits last year. This conservative strategy provides a buffer for unforeseen circumstances and implies robust dividends.
This aligns with the InvestingPro tip that the company has raised its dividend for 5 consecutive years, making it a potentially attractive investment for income-focused investors.
The company has shown strong growth prospects with a consistent increase in earnings per share. This makes it an appealing option for those seeking dividend payers due to its ability to expand dividends. The firm's growth is reflected in its revenue growth of 0.51% and quarterly revenue growth of 33.33% as per InvestingPro data.
For those interested in further insights, InvestingPro offers a suite of additional tips and real-time metrics. These insights could further help in making informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.