Is It Smart To Buy Stock Yards Bancorp, Inc. (NASDAQ:SYBT) Before It Goes Ex-Dividend?

It looks like Stock Yards Bancorp, Inc. (NASDAQ:SYBT) is about to go ex-dividend in the next two days. The ex-dividend date is one business day before a company’s record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn’t show on the record date. Therefore, if you purchase Stock Yards Bancorp’s shares on or after the 16th of June, you won’t be eligible to receive the dividend, when it is paid on the 1st of July.

The company’s next dividend payment will be US$0.31 per share, on the back of last year when the company paid a total of US$1.24 to shareholders. Based on the last year’s worth of payments, Stock Yards Bancorp has a trailing yield of 1.6% on the current stock price of US$76.52. If you buy this business for its dividend, you should have an idea of whether Stock Yards Bancorp’s dividend is reliable and sustainable. So we need to investigate whether Stock Yards Bancorp can afford its dividend, and if the dividend could grow.

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Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately Stock Yards Bancorp’s payout ratio is modest, at just 30% of profit.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

View our latest analysis for Stock Yards Bancorp

Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.

NasdaqGS:SYBT Historic Dividend June 13th 2025

Have Earnings And Dividends Been Growing?

Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we’re encouraged by the steady growth at Stock Yards Bancorp, with earnings per share up 7.2% on average over the last five years.

The main way most investors will assess a company’s dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, Stock Yards Bancorp has increased its dividend at approximately 7.8% a year on average. It’s encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

The Bottom Line

Has Stock Yards Bancorp got what it takes to maintain its dividend payments? Stock Yards Bancorp has seen its earnings per share grow slowly in recent years, and the company reinvests more than half of its profits in the business, which generally bodes well for its future prospects. Stock Yards Bancorp ticks a lot of boxes for us from a dividend perspective, and we think these characteristics should mark the company as deserving of further attention.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. In terms of investment risks, we’ve identified 1 warning sign with Stock Yards Bancorp and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.