Great Southern Bancorp, Inc. (NASDAQ:GSBC) will pay a dividend of $0.40 on the 14th of April. This means that the annual payment will be 2.8% of the current stock price, which is in line with the average for the industry.

Great Southern Bancorp's Earnings Will Easily Cover The Distributions

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue.

Great Southern Bancorp has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Based on Great Southern Bancorp's last earnings report, the payout ratio is at a decent 30%, meaning that the company is able to pay out its dividend with a bit of room to spare.

The next 3 years are set to see EPS grow by 0.5%. The future payout ratio could be 31% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

See our latest analysis for Great Southern Bancorp

Great Southern Bancorp Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The annual payment during the last 10 years was $0.80 in 2015, and the most recent fiscal year payment was $1.60. This works out to be a compound annual growth rate (CAGR) of approximately 7.2% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

The Dividend's Growth Prospects Are Limited

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Great Southern Bancorp hasn't seen much change in its earnings per share over the last five years. While EPS growth is quite low, Great Southern Bancorp has the option to increase the payout ratio to return more cash to shareholders.

Great Southern Bancorp Looks Like A Great Dividend Stock

Overall, we like to see the dividend staying consistent, and we think Great Southern Bancorp might even raise payments in the future. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All in all, this checks a lot of the boxes we look for when choosing an income stock.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For example, we've picked out 1 warning sign for Great Southern Bancorp that investors should know about before committing capital to this stock. Is Great Southern Bancorp not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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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.